[107th Congress Public Law 210]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ210.107]
[[Page 116 STAT. 933]]
Public Law 107-210
107th Congress
An Act
To extend the Andean Trade Preference Act, to grant additional trade
benefits under that Act, and for other purposes. <<NOTE: Aug. 6,
2002 - [H.R. 3009]>>
Be it enacted by the Senate and House of Representatives of the
United States <<NOTE: Trade Act of 2002.>> of America in Congress
assembled,
SECTION 1. <<NOTE: 19 USC 3801 note.>> SHORT TITLE.
This Act may be cited as the ``Trade Act of 2002''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) Divisions.--This Act is organized into 5 divisions as follows:
(1) Division a.--Trade Adjustment Assistance.
(2) Division b.--Bipartisan Trade Promotion Authority.
(3) Division c.--Andean Trade Preference Act.
(4) Division d.--Extension of Certain Preferential Trade
Treatment and Other Provisions.
(5) Division e.--Miscellaneous Provisions.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A--TRADE ADJUSTMENT ASSISTANCE
Sec. 101. Short title.
TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM
Subtitle A--Trade Adjustment Assistance For Workers
Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response
assistance; expedited review of petitions by secretary of
labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Provision of employer-based training.
Sec. 119. Coordination with title I of the Workforce Investment Act of
1998.
Sec. 120. Expenditure period.
Sec. 121. Job search allowances.
Sec. 122. Relocation allowances.
Sec. 123. Repeal of NAFTA transitional adjustment assistance program.
Sec. 124. Demonstration project for alternative trade adjustment
assistance for older workers.
Sec. 125. Declaration of policy; sense of Congress.
Subtitle B--Trade Adjustment Assistance For Firms
Sec. 131. Reauthorization of program.
Subtitle C--Trade Adjustment Assistance For Farmers
Sec. 141. Trade adjustment assistance for farmers.
[[Page 116 STAT. 934]]
Sec. 142. Conforming amendments.
Sec. 143. Study on TAA for fishermen.
Subtitle D--Effective Date
Sec. 151. Effective date.
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
Sec. 201. Credit for health insurance costs of individuals receiving a
trade readjustment allowance or a benefit from the Pension
Benefit Guaranty Corporation.
Sec. 202. Advance payment of credit for health insurance costs of
eligible individuals.
Sec. 203. Health insurance assistance for eligible individuals.
TITLE III--CUSTOMS REAUTHORIZATION
Sec. 301. Short title.
Subtitle A--United States Customs Service
Chapter 1--Drug Enforcement and Other Noncommercial and Commercial
Operations
Sec. 311. Authorization of appropriations for noncommercial operations,
commercial operations, and air and marine interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for
the United States-Mexico border, United States-Canada border,
and Florida and the Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.
Chapter 2--Child Cyber-smuggling Center of the Customs Service
Sec. 321. Authorization of appropriations for program to prevent child
pornography/child sexual exploitation.
Chapter 3--Miscellaneous Provisions
Sec. 331. Additional Customs Service officers for United States-Canada
Border.
Sec. 332. Study and report relating to personnel practices of the
Customs Service.
Sec. 333. Study and report relating to accounting and auditing
procedures of the Customs Service.
Sec. 334. Establishment and implementation of cost accounting system;
reports.
Sec. 335. Study and report relating to timeliness of prospective
rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National Customs Automation Program.
Sec. 339. Authorization of appropriations for customs staffing.
Chapter 4--Antiterrorism Provisions
Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing
of the customs service.
Sec. 343. Mandatory advanced electronic information for cargo and other
improved Customs reporting procedures.
Sec. 343A. Secure systems of transportation.
Sec. 344. Border search authority for certain contraband in outbound
mail.
Sec. 345. Authorization of appropriations for reestablishment of customs
operations in New York City.
Chapter 5--Textile Transshipment Provisions
Sec. 351. GAO audit of textile transshipment monitoring by Customs
Service.
Sec. 352. Authorization of appropriations for textile transshipment
enforcement operations.
Sec. 353. Implementation of the African Growth and Opportunity Act.
Subtitle B--Office of the United States Trade Representative
Sec. 361. Authorization of appropriations.
Subtitle C--United States International Trade Commission
Sec. 371. Authorization of appropriations.
Subtitle D--Other trade provisions
Sec. 381. Increase in aggregate value of articles exempt from duty
acquired abroad by United States residents.
[[Page 116 STAT. 935]]
Sec. 382. Regulatory audit procedures.
Sec. 383. Payment of duties and fees.
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE PROMOTION AUTHORITY
Sec. 2101. Short title and findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations
have already begun.
Sec. 2107. Congressional Oversight Group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Report on impact of trade promotion authority.
Sec. 2112. Interests of small business.
Sec. 2113. Definitions.
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN TRADE PREFERENCE
Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination.
Sec. 3105. Report on Free Trade Agreement with Israel.
Sec. 3106. Modification of duty treatment for tuna.
Sec. 3107. Trade benefits under the caribbean basin economic recovery
act.
Sec. 3108. Trade benefits under the African Growth and Opportunity Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
Sec. 5101. Wool provisions.
Sec. 5102. Duty suspension on wool.
Subtitle B--Other Provisions
Sec. 5201. Fund for WTO dispute settlements.
Sec. 5202. Certain steam or other vapor generating boilers used in
nuclear facilities.
Sec. 5203. Sugar tariff-rate quota circumvention.
DIVISION A--TRADE <<NOTE: Trade Adjustment Assistance Reform Act of
2002.>> ADJUSTMENT ASSISTANCE
SEC. 101. SHORT <<NOTE: 19 USC 2101 note.>> TITLE.
This division may be cited as the ``Trade Adjustment Assistance
Reform Act of 2002''.
[[Page 116 STAT. 936]]
TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM
Subtitle A--Trade Adjustment Assistance For Workers
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.
(a) Assistance for Workers.--Section 245 of the Trade Act of 1974
(19 U.S.C. 2317) is amended by striking ``October 1, 1998, and ending
September 30, 2001,'' each place it appears and inserting ``October 1,
2001, and ending September 30, 2007,''.
(b) Assistance for Firms.--Section 256(b) of the Trade Act of 1974
(19 U.S.C. 2346(b)) is amended by striking ``October 1, 1998, and ending
September 30, 2001'' and inserting ``October 1, 2001, and ending
September 30, 2007,''.
(c) Termination.--Section 285 of the Trade Act of 1974 is amended to
read as follows:
``SEC. 285. <<NOTE: 19 USC note prec. 2271.>> TERMINATION.
``(a) Assistance for Workers.--
``(1) In general.--Except as provided in paragraph (2),
trade adjustment assistance, vouchers, allowances, and other
payments or benefits may not be provided under chapter 2 after
September 30, 2007.
``(2) Exception.--Notwithstanding paragraph (1), a worker
shall continue to receive trade adjustment assistance benefits
and other benefits under chapter 2 for any week for which the
worker meets the eligibility requirements of that chapter, if on
or before September 30, 2007, the worker is--
``(A) certified as eligible for trade adjustment
assistance benefits under chapter 2 of this title; and
``(B) otherwise eligible to receive trade adjustment
assistance benefits under chapter 2.
``(b) Other Assistance.--
``(1) Assistance for firms.--Technical assistance may not be
provided under chapter 3 after September 30, 2007.
``(2) Assistance for farmers.--
``(A) In general.--Except as provided in
subparagraph (B), adjustment assistance, vouchers,
allowances, and other payments or benefits may not be
provided under chapter 6 after September 30, 2007.
``(B) Exception.--Notwithstanding subparagraph (A),
an agricultural commodity producer (as defined in
section 291(2)) shall continue to receive adjustment
assistance benefits and other benefits under chapter 6,
for any week for which the agricultural commodity
producer meets the eligibility requirements of chapter
6, if on or before September 30, 2007, the agricultural
commodity producer is--
``(i) certified as eligible for adjustment
assistance benefits under chapter 6; and
``(ii) is otherwise eligible to receive
adjustment assistance benefits under such chapter
6.''.
[[Page 116 STAT. 937]]
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE
ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF
LABOR.
(a) Filing of Petitions and Provision of Rapid Response
Assistance.--Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a))
is amended to read as follows:
``(a)(1) A petition for certification of eligibility to apply for
adjustment assistance for a group of workers under this chapter may be
filed simultaneously with the Secretary and with the Governor of the
State in which such workers' firm or subdivision is located by any of
the following:
``(A) The group of workers (including workers in an
agricultural firm or subdivision of any agricultural firm).
``(B) The certified or recognized union or other duly
authorized representative of such workers.
``(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)), including State
employment security agencies, or the State dislocated worker
unit established under title I of such Act, on behalf of such
workers.
``(2) Upon receipt of a petition filed under paragraph (1), the
Governor shall--
``(A) ensure that rapid response assistance, and appropriate
core and intensive services (as described in section 134 of the
Workforce Investment Act of 1998 (29 U.S.C. 2864)) authorized
under other Federal laws are made available to the workers
covered by the petition to the extent authorized under such
laws; and
``(B) assist the Secretary in the review of the petition by
verifying such information and providing such other assistance
as the Secretary may request.
``(3) Upon receipt of the petition, the Secretary shall promptly
publish notice in the Federal Register that the Secretary has received
the petition and initiated an investigation.''.
(b) Expedited Review of Petitions by Secretary of Labor.--Section
223(a) of such Act (19 U.S.C. 2273(a)) is amended in the first sentence
by striking ``60 days'' and inserting ``40 days''.
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.
(a) Trade Adjustment Assistance Program.--
(1) In general.--Section 222 of the Trade Act of 1974 (19
U.S.C. 2272) is amended--
(A) by amending subsection (a) to read as follows:
``(a) In General.--A group of workers (including workers in any
agricultural firm or subdivision of an agricultural firm) shall be
certified by the Secretary as eligible to apply for adjustment
assistance under this chapter pursuant to a petition filed under section
221 if the Secretary determines that--
``(1) a significant number or proportion of the workers in
such workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are threatened to
become totally or partially separated; and
``(2)(A)(i) the sales or production, or both, of such firm
or subdivision have decreased absolutely;
``(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have increased;
and
[[Page 116 STAT. 938]]
``(iii) the increase in imports described in clause (ii)
contributed importantly to such workers' separation or threat of
separation and to the decline in the sales or production of such
firm or subdivision; or
``(B)(i) there has been a shift in production by such
workers' firm or subdivision to a foreign country of articles
like or directly competitive with articles which are produced by
such firm or subdivision; and
``(ii)(I) the country to which the workers' firm has shifted
production of the articles is a party to a free trade agreement
with the United States;
``(II) the country to which the workers' firm has shifted
production of the articles is a beneficiary country under the
Andean Trade Preference Act, African Growth and Opportunity Act,
or the Caribbean Basin Economic Recovery Act; or
``(III) there has been or is likely to be an increase in
imports of articles that are like or directly competitive with
articles which are or were produced by such firm or
subdivision.'';
(B) by redesignating subsection (b) as subsection
(c); and
(C) by inserting after subsection (a) the following:
``(b) Adversely affected secondary workers.--A group of workers
(including workers in any agricultural firm or subdivision of an
agricultural firm) shall be certified by the Secretary as eligible to
apply for trade adjustment assistance benefits under this chapter if the
Secretary determines that--
``(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the firm have
become totally or partially separated, or are threatened to
become totally or partially separated;
``(2) the workers' firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that employed a
group of workers who received a certification of eligibility
under subsection (a), and such supply or production is related
to the article that was the basis for such certification (as
defined in subsection (c) (3) and (4)); and
``(3) either--
``(A) the workers' firm is a supplier and the
component parts it supplied to the firm (or subdivision)
described in paragraph (2) accounted for at least 20
percent of the production or sales of the workers' firm;
or
``(B) a loss of business by the workers' firm with
the firm (or subdivision) described in paragraph (2)
contributed importantly to the workers' separation or
threat of separation determined under paragraph (1).''.
(b) Definitions.--Section 222(c) of such Act, <<NOTE: 19 USC
2272.>> as redesignated by paragraph (1)(A), is amended--
(1) in the matter preceding paragraph (1), by striking
``subsection (a)(3)'' and inserting ``this section''; and
(2) by adding at the end the following:
``(3) Downstream producer.--The term `downstream producer'
means a firm that performs additional, value-added production
processes for a firm or subdivision, including a firm that
performs final assembly or finishing, directly for another firm
(or subdivision), for articles that were the basis for a
certification of eligibility under subsection (a) of a group of
[[Page 116 STAT. 939]]
workers employed by such other firm, if the certification of
eligibility under subsection (a) is based on an increase in
imports from, or a shift in production to, Canada or Mexico.
``(4) Supplier.--The term `supplier' means a firm that
produces and supplies directly to another firm (or subdivision)
component parts for articles that were the basis for a
certification of eligibility under subsection (a) of a group of
workers employed by such other firm.''.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT ALLOWANCES.
(a) Clarification of Certain Reductions.--Section 231(a)(3)(B) of
the Trade Act of 1974 (19 U.S.C. 2291(a)(3)(B)) is amended by inserting
after ``any unemployment insurance'' the following: ``, except
additional compensation that is funded by a State and is not reimbursed
from any Federal funds,''.
(b) Enrollment in Training Requirement.--Section 231(a)(5)(A) of
such Act (19 U.S.C. 2291(a)(5)(A)) is amended--
(1) by inserting ``(i)'' after ``(A)'';
(2) by adding ``and'' after the comma at the end; and
(3) by adding at the end the following:
``(ii) the enrollment <<NOTE: Deadlines.>> required
under clause (i) occurs no later than the latest of--
``(I) the last day of the 16th week after the
worker's most recent total separation from
adversely affected employment which meets the
requirements of paragraphs (1) and (2),
``(II) the last day of the 8th week after the
week in which the Secretary issues a certification
covering the worker,
``(III) 45 days after the later of the dates
specified in subclause (I) or (II), if the
Secretary determines there are extenuating
circumstances that justify an extension in the
enrollment period, or
``(IV) the last day of a period determined by
the Secretary to be approved for enrollment after
the termination of a waiver issued pursuant to
subsection (c),''.
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.
(a) In General.--Section 231(c) of the Trade Act of 1974 (19 U.S.C.
2291(c)) is amended to read as follows:
``(c) Waivers of Training Requirements.--
``(1) Issuance of waivers.--The Secretary may issue a
written statement to an adversely affected worker waiving the
requirement to be enrolled in training described in subsection
(a)(5)(A) if the Secretary determines that it is not feasible or
appropriate for the worker, because of 1 or more of the
following reasons:
``(A) Recall.--The worker has been notified that the
worker will be recalled by the firm from which the
separation occurred.
``(B) Marketable skills.--The worker possesses
marketable skills for suitable employment (as determined
pursuant to an assessment of the worker, which may
include the profiling system under section 303(j) of the
Social Security Act (42 U.S.C. 503(j)), carried out in
accordance with guidelines issued by the Secretary) and
there
[[Page 116 STAT. 940]]
is a reasonable expectation of employment at equivalent
wages in the foreseeable future.
``(C) Retirement.--The worker is within 2 years of
meeting all requirements for entitlement to either--
``(i) old-age insurance benefits under title
II of the Social Security Act (42 U.S.C. 401 et
seq.) (except for application therefor); or
``(ii) a private pension sponsored by an
employer or labor organization.
``(D) Health.--The worker is unable to participate
in training due to the health of the worker, except that
a waiver under this subparagraph shall not be construed
to exempt a worker from requirements relating to the
availability for work, active search for work, or
refusal to accept work under Federal or State
unemployment compensation laws.
``(E) Enrollment unavailable.--The first available
enrollment date for the approved training of the worker
is within 60 days after the date of the determination
made under this paragraph, or, if later, there are
extenuating circumstances for the delay in enrollment,
as determined pursuant to guidelines issued by the
Secretary.
``(F) Training not available.--Training approved by
the Secretary is not reasonably available to the worker
from either governmental agencies or private sources
(which may include area vocational education schools, as
defined in section 3 of the Carl D. Perkins Vocational
and Technical Education Act of 1998 (20 U.S.C. 2302),
and employers), no training that is suitable for the
worker is available at a reasonable cost, or no training
funds are available.
``(2) Duration of waivers.--
``(A) In general.--A waiver issued under paragraph
(1) shall be effective for not more than 6 months after
the date on which the waiver is issued, unless the
Secretary determines otherwise.
``(B) Revocation.--The Secretary shall revoke a
waiver issued under paragraph (1) if the Secretary
determines that the basis of a waiver is no longer
applicable to the worker and shall notify the worker in
writing of the revocation.
``(3) Agreements under section 239.--
``(A) Issuance by cooperating states.--Pursuant to
an agreement under section 239, the Secretary may
authorize a cooperating State to issue waivers as
described in paragraph (1).
``(B) Submission of statements.--An agreement under
section 239 shall include a requirement that the
cooperating State submit to the Secretary the written
statements provided under paragraph (1) and a statement
of the reasons for the waiver.''.
(b) Conforming Amendment.--Section 231(a)(5)(C) of such Act (19
U.S.C. 2291(a)(5)(C)) is amended by striking ``certified''.
[[Page 116 STAT. 941]]
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.
(a) Increase in Maximum Number of Weeks.--Section 233(a) of the
Trade Act of 1974 (19 U.S.C. 2293(a)) is amended--
(1) in paragraph (2), by inserting after ``104-week period''
the following: ``(or, in the case of an adversely affected
worker who requires a program of remedial education (as
described in section 236(a)(5)(D)) in order to complete training
approved for the worker under section 236, the 130-week
period)''; and
(2) in paragraph (3), by striking ``26'' each place it
appears and inserting ``52''.
(b) Special Rule Relating to Break in Training.--Section 233(f) of
the Trade Act of 1974 (19 U.S.C. 2293(f)) is amended in the matter
preceding paragraph (1) by striking ``14 days'' and inserting ``30
days''.
(c) Additional Weeks for Individuals in Need of Remedial
Education.--Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
amended by adding at the end the following:
``(g) Notwithstanding any other provision of this section, in order
to assist an adversely affected worker to complete training approved for
the worker under section 236 which includes a program of remedial
education (as described in section 236(a)(5)(D)), and in accordance with
regulations prescribed by the Secretary, payments may be made as trade
readjustment allowances for up to 26 additional weeks in the 26-week
period that follows the last week of entitlement to trade readjustment
allowances otherwise payable under this chapter.''.
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.
Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C.
2296(a)(2)(A)) is amended by striking ``$80,000,000'' and all that
follows through ``$70,000,000'' and inserting ``$220,000,000''.
SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING.
(a) In General.--Section 236(a)(5)(A) of the Trade Act of 1974 (19
U.S.C. 2296(a)(5)(A)) is amended to read as follows:
``(A) employer-based training, including--
``(i) on-the-job training, and
``(ii) customized training,''.
(b) Reimbursement.--Section 236(c)(8) of such Act (19 U.S.C.
2296(c)(8)) is amended to read as follows:
``(8) the employer is provided reimbursement of not more
than 50 percent of the wage rate of the participant, for the
cost of providing the training and additional supervision
related to the training,''.
(c) Definition.--Section 236 of such Act (19 U.S.C. 2296) is amended
by adding at the end the following new subsection:
``(f) For purposes of this section, the term `customized training'
means training that is--
``(1) designed to meet the special requirements of an
employer or group of employers;
``(2) conducted with a commitment by the employer or group
of employers to employ an individual upon successful completion
of the training; and
``(3) for which the employer pays for a significant portion
(but in no case less than 50 percent) of the cost of such
training, as determined by the Secretary.''.
[[Page 116 STAT. 942]]
SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVESTMENT ACT OF
1998.
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended by
inserting before the period at the end of the first sentence the
following: ``, including the services provided through one-stop delivery
systems described in section 134(c) of the Workforce Investment Act of
1998 (29 U.S.C. 2864(c))''.
SEC. 120. EXPENDITURE PERIOD.
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as amended by
section 111(a) of this Act, is further amended by amending subsection
(b) to read as follows:
``(b) Period of Expenditure.--Funds obligated for any fiscal year to
carry out activities under sections 235 through 238 may be expended by
each State receiving such funds during that fiscal year and the
succeeding two fiscal years.''.
SEC. 121. JOB SEARCH ALLOWANCES.
Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended to
read as follows:
``SEC. 237. JOB SEARCH ALLOWANCES.
``(a) Job Search Allowance Authorized.--
``(1) In general.--An adversely affected worker covered by a
certification issued under subchapter A of this chapter may file
an application with the Secretary for payment of a job search
allowance.
``(2) Approval of applications.--The Secretary may grant an
allowance pursuant to an application filed under paragraph (1)
when all of the following apply:
``(A) Assist adversely affected worker.--The
allowance is paid to assist an adversely affected worker
who has been totally separated in securing a job within
the United States.
``(B) Local employment not available.--The Secretary
determines that the worker cannot reasonably be expected
to secure suitable employment in the commuting area in
which the worker resides.
``(C) <<NOTE: Deadlines.>> Application.--The worker
has filed an application for the allowance with the
Secretary before--
``(i) the later of--
``(I) the 365th day after the date
of the certification under which the
worker is certified as eligible; or
``(II) the 365th day after the date
of the worker's last total separation;
or
``(ii) the date that is the 182d day after the
date on which the worker concluded training,
unless the worker received a waiver under section
231(c).
``(b) Amount of Allowance.--
``(1) In general.--An allowance granted under subsection (a)
shall provide reimbursement to the worker of 90 percent of the
cost of necessary job search expenses as prescribed by the
Secretary in regulations.
``(2) Maximum allowance.--Reimbursement under this
subsection may not exceed $1,250 for any worker.
``(3) Allowance for subsistence and transportation.--
Reimbursement under this subsection may not be made for
[[Page 116 STAT. 943]]
subsistence and transportation expenses at levels exceeding
those allowable under section 236(b) (1) and (2).
``(c) Exception.--Notwithstanding subsection (b), the Secretary
shall reimburse any adversely affected worker for necessary expenses
incurred by the worker in participating in a job search program approved
by the Secretary.''.
SEC. 122. RELOCATION ALLOWANCES.
Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended to
read as follows:
``SEC. 238. RELOCATION ALLOWANCES.
``(a) Relocation Allowance Authorized.--
``(1) In general.--Any adversely affected worker covered by
a certification issued under subchapter A of this chapter may
file an application for a relocation allowance with the
Secretary, and the Secretary may grant the relocation allowance,
subject to the terms and conditions of this section.
``(2) Conditions for granting allowance.--A relocation
allowance may be granted if all of the following terms and
conditions are met:
``(A) Assist an adversely affected worker.--The
relocation allowance will assist an adversely affected
worker in relocating within the United States.
``(B) Local employment not available.--The Secretary
determines that the worker cannot reasonably be expected
to secure suitable employment in the commuting area in
which the worker resides.
``(C) Total separation.--The worker is totally
separated from employment at the time relocation
commences.
``(D) Suitable employment obtained.--The worker--
``(i) has obtained suitable employment
affording a reasonable expectation of long-term
duration in the area in which the worker wishes to
relocate; or
``(ii) has obtained a bona fide offer of such
employment.
``(E) <<NOTE: Deadlines.>> Application.--The worker
filed an application with the Secretary before--
``(i) the later of--
``(I) the 425th day after the date
of the certification under subchapter A
of this chapter; or
``(II) the 425th day after the date
of the worker's last total separation;
or
``(ii) the date that is the 182d day after the
date on which the worker concluded training,
unless the worker received a waiver under section
231(c).
``(b) Amount of Allowance.--The relocation allowance granted to a
worker under subsection (a) includes--
``(1) 90 percent of the reasonable and necessary expenses
(including, but not limited to, subsistence and transportation
expenses at levels not exceeding those allowable under section
236(b) (1) and (2) specified in regulations prescribed by the
Secretary, incurred in transporting the worker, the worker's
family, and household effects; and
``(2) a lump sum equivalent to 3 times the worker's average
weekly wage, up to a maximum payment of $1,250.
``(c) Limitations.--A relocation allowance may not be granted to a
worker unless--
[[Page 116 STAT. 944]]
``(1) the relocation occurs within 182 days after the filing
of the application for relocation assistance; or
``(2) the relocation occurs within 182 days after the
conclusion of training, if the worker entered a training program
approved by the Secretary under section 236(b) (1) and (2).''.
SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM.
(a) In General.--Subchapter D of chapter 2 of title II of such Act
(19 U.S.C. 2331) is repealed.
(b) Conforming Amendments.--
(1) Section 225(b) (1) and (2) of the Trade Act of 1974 (19
U.S.C. 2275(b) (1) and (2)) is amended by striking ``or
subchapter D'' each place it appears.
(2) Section 249A of such Act (19 U.S.C. 2322) is repealed.
(3) The table of contents of such Act is amended--
(A) by striking the item relating to section 249A;
and
(B) by striking the items relating to subchapter D
of chapter 2 of title II.
(4) Section 284(a) <<NOTE: 19 USC 2395.>> of such Act is
amended by striking ``or section 250(c)''.
(c) Effective <<NOTE: 19 USC 2331 note.>> Date.--
(1) In general.--The amendments made by this section shall
apply with respect to petitions filed under chapter 2 of title
II of the Trade Act of 1974, on or after the date that is 90
days after the date of enactment of this Act.
(2) Workers certified as eligible before effective date.--
Notwithstanding subsection (a), a worker receiving benefits
under chapter 2 of title II of the Trade Act of 1974 shall
continue to receive (or be eligible to receive) benefits and
services under chapter 2 of title II of the Trade Act of 1974,
as in effect on the day before the amendments made by this
section take effect under subsection (a), for any week for which
the worker meets the eligibility requirements of such chapter 2
as in effect on such date.
SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT
ASSISTANCE FOR OLDER WORKERS.
(a) Demonstration Program.--Chapter 2 of title II of the Trade Act
of 1974 (19 U.S.C. 2271 et seq.) is amended by striking section 246 and
inserting the following new section:
``SEC. 246. <<NOTE: 19 USC 2318.>> DEMONSTRATION PROJECT FOR ALTERNATIVE
TRADE ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.
``(a) In General.--
``(1) Establishment.--Not <<NOTE: Deadline.>> later than 1
year after the date of enactment of the Trade Adjustment
Assistance Reform Act of 2002, the Secretary shall establish an
alternative trade adjustment assistance program for older
workers that provides the benefits described in paragraph (2).
``(2) Benefits.
``(A) Payments.--A State shall use the funds
provided to the State under section 241 to pay, for a
period not to exceed 2 years, to a worker described in
paragraph (3)(B), 50 percent of the difference between--
``(i) the wages received by the worker from
reemployment; and
[[Page 116 STAT. 945]]
``(ii) the wages received by the worker at the
time of separation.
``(B) Health insurance.--A worker described in
paragraph (3)(B) participating in the program
established under paragraph (1) is eligible to receive,
for a period not to exceed 2 years, a credit for health
insurance costs under section 35 of the Internal Revenue
Code of 1986, as added by section 201 of the Trade Act
of 2002.
``(3) Eligibility.--
``(A) Firm eligibility.--
``(i) In general.--The Secretary shall provide
the opportunity for a group of workers on whose
behalf a petition is filed under section 221 to
request that the group of workers be certified for
the alternative trade adjustment assistance
program under this section at the time the
petition is filed.
``(ii) Criteria.--In determining whether to
certify a group of workers as eligible for the
alternative trade adjustment assistance program,
the Secretary shall consider the following
criteria:
``(I) Whether a significant number
of workers in the workers' firm are 50
years of age or older.
``(II) Whether the workers in the
workers' firm possess skills that are
not easily transferable.
``(III) The competitive conditions
within the workers' industry.
``(iii) Deadline.--The Secretary shall
determine whether the workers in the group are
eligible for the alternative trade adjustment
assistance program by the date specified in
section 223(a).
``(B) Individual Eligibility.--A worker in the group
that the Secretary has certified as eligible for the
alternative trade adjustment assistance program may
elect to receive benefits under the alternative trade
adjustment assistance program if the worker--
``(i) is covered by a certification under
subchapter A of this chapter;
``(ii) obtains reemployment not more than 26
weeks after the date of separation from the
adversely affected employment;
``(iii) is at least 50 years of age; and
``(iv) earns not more than $50,000 a year in
wages from reemployment;
``(v) is employed on a full-time basis as
defined by State law in the State in which the
worker is employed; and
``(vi) does not return to the employment from
which the worker was separated.
``(4) Total amount of payments.--The payments described in
paragraph (2)(A) made to a worker may not exceed $10,000 per
worker during the 2-year eligibility period.
``(5) Limitation on other benefits.--Except as provided in
section 238(a)(2)(B), if a worker is receiving payments pursuant
to the program established under paragraph (1), the worker shall
not be eligible to receive any other benefits under this title.
``(b) Termination.--
[[Page 116 STAT. 946]]
``(1) In general.--Except as provided in paragraph (2), no
payments may be made by a State under the program established
under subsection (a)(1) after the date that is 5 years after the
date on which such program is implemented by the State.
``(2) Exception.--Notwithstanding paragraph (1), a worker
receiving payments under the program established under
subsection (a)(1) on the termination date described in paragraph
(1) shall continue to receive such payments provided that the
worker meets the criteria described in subsection (a)(3)(B).''.
(b) Table of Contents.--The Trade Act of 1974 (U.S.C. et seq.) is
amended in the table of contents by inserting after the item relating to
section 245 the following new item:
``Sec. 246. Demonstration project for alternative trade adjustment
assistance for older workers.''.
SEC. 125. <<NOTE: 19 USC 2271 note.>> DECLARATION OF POLICY; SENSE OF
CONGRESS.
(a) Declaration of Policy.--Congress reiterates that, under the
trade adjustment assistance program under chapter 2 of title II of the
Trade Act of 1974, workers are eligible for transportation, childcare,
and healthcare assistance, as well as other related assistance under
programs administered by the Department of Labor.
(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Labor, working independently and in conjunction with the
States, should, in accordance with section 225 of the Trade Act of 1974,
provide more specific information about benefit allowances, training,
and other employment services, and the petition and application
procedures (including appropriate filing dates) for such allowances,
training, and services, under the trade adjustment assistance program
under chapter 2 of title II of the Trade Act of 1974 to workers who are
applying for, or are certified to receive, assistance under that
program, including information on all other Federal assistance available
to such workers.
Subtitle B--Trade Adjustment Assistance For Firms
SEC. 131. REAUTHORIZATION OF PROGRAM.
Section 256(b) of chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2346(b)) is amended to read as follows:
``(b) There are authorized to be appropriated to the Secretary
$16,000,000 for each of fiscal years 2003 through 2007, to carry out the
Secretary's functions under this chapter in connection with furnishing
adjustment assistance to firms. Amounts appropriated under this
subsection shall remain available until expended.''.
Subtitle C--Trade Adjustment Assistance For Farmers
SEC. 141. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
(a) In General.--Title II of the Trade Act of 1974 (19 U.S.C. 2251
et seq.) is amended by adding at the end the following new chapter:
[[Page 116 STAT. 947]]
``CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS
``SEC. 291. <<NOTE: 19 USC 2401.>> DEFINITIONS.
``In this chapter:
``(1) Agricultural commodity.--The term `agricultural
commodity' means any agricultural commodity (including
livestock) in its raw or natural state.
``(2) Agricultural commodity producer.--The term
`agricultural commodity producer' has the same meaning as the
term `person' as prescribed by regulations promulgated under
section 1001(5) of the Food Security Act of 1985 (7 U.S.C.
1308(5)).
``(3) Contributed importantly.--
``(A) In general.--The term `contributed
importantly' means a cause which is important but not
necessarily more important than any other cause.
``(B) Determination of contributed importantly.--The
determination of whether imports of articles like or
directly competitive with an agricultural commodity with
respect to which a petition under this chapter was filed
contributed importantly to a decline in the price of the
agricultural commodity shall be made by the Secretary.
``(4) Duly authorized representative.--The term `duly
authorized representative' means an association of agricultural
commodity producers.
``(5) National average price.--The term `national average
price' means the national average price paid to an agricultural
commodity producer for an agricultural commodity in a marketing
year as determined by the Secretary.
``(6) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 292. <<NOTE: 19 USC 2401a.>> PETITIONS; GROUP ELIGIBILITY.
``(a) In General.--A petition for a certification of eligibility to
apply for adjustment assistance under this chapter may be filed with the
Secretary by a group of agricultural commodity producers or by their
duly authorized representative. <<NOTE: Notice. Federal Register,
publication.>> Upon receipt of the petition, the Secretary shall
promptly publish notice in the Federal Register that the Secretary has
received the petition and initiated an investigation.
``(b) Hearings.--If the petitioner, or any other person found by the
Secretary to have a substantial interest in the proceedings, submits not
later than 10 days after the date of the Secretary's publication under
subsection (a) a request for a hearing, the Secretary shall provide for
a public hearing and afford such interested person an opportunity to be
present, to produce evidence, and to be heard.
``(c) Group Eligibility Requirements.--The Secretary shall certify a
group of agricultural commodity producers as eligible to apply for
adjustment assistance under this chapter if the Secretary determines--
``(1) that the national average price for the agricultural
commodity, or a class of goods within the agricultural
commodity, produced by the group for the most recent marketing
year for which the national average price is available is less
than 80 percent of the average of the national average price for
such agricultural commodity, or such class of goods, for
[[Page 116 STAT. 948]]
the 5 marketing years preceding the most recent marketing year;
and
``(2) that increases in imports of articles like or directly
competitive with the agricultural commodity, or class of goods
within the agricultural commodity, produced by the group
contributed importantly to the decline in price described in
paragraph (1).
``(d) Special Rule for Qualified Subsequent Years.--A group of
agricultural commodity producers certified as eligible under section 293
shall be eligible to apply for assistance under this chapter in any
qualified year after the year the group is first certified, if the
Secretary determines that--
``(1) the national average price for the agricultural
commodity, or class of goods within the agricultural commodity,
produced by the group for the most recent marketing year for
which the national average price is available is equal to or
less than the price determined under subsection (c)(1); and
``(2) the requirements of subsection (c)(2) are met.
``(e) Determination of Qualified Year and Commodity.--In this
chapter:
``(1) Qualified year.--The term `qualified year', with
respect to a group of agricultural commodity producers certified
as eligible under section 293, means each consecutive year after
the year in which the group is certified and in which the
Secretary makes the determination under subsection (c) or (d),
as the case may be.
``(2) Classes of goods within a commodity.--In any case in
which there are separate classes of goods within an agricultural
commodity, the Secretary shall treat each class as a separate
commodity in determining group eligibility, the national average
price, and level of imports under this section and section 296.
``SEC. 293. <<NOTE: 19 USC 2401b.>> DETERMINATIONS BY SECRETARY OF
AGRICULTURE.
``(a) In General.--As soon as practicable <<NOTE: Deadline.>> after
the date on which a petition is filed under section 292, but in any
event not later than 40 days after that date, the Secretary shall
determine whether the petitioning group meets the requirements of
section 292 (c) or (d), as the case may be, and shall, if the group
meets the requirements, issue a certification of eligibility to apply
for assistance under this chapter covering agricultural commodity
producers in any group that meets the requirements. Each certification
shall specify the date on which eligibility under this chapter begins.
``(b) Notice.--Upon <<NOTE: Federal Register, publication.>> making
a determination on a petition, the Secretary shall promptly publish a
summary of the determination in the Federal Register, together with the
Secretary's reasons for making the determination.
``(c) Termination of Certification.-- <<NOTE: Federal Register,
publication.>> Whenever the Secretary determines, with respect to any
certification of eligibility under this chapter, that the decline in
price for the agricultural commodity covered by the certification is no
longer attributable to the conditions described in section 292, the
Secretary shall terminate such certification and promptly cause notice
of such termination to be published in the Federal Register, together
with the Secretary's reasons for making such determination.
[[Page 116 STAT. 949]]
``SEC. 294. <<NOTE: 19 USC 2401c.>> STUDY BY SECRETARY OF AGRICULTURE
WHEN INTERNATIONAL TRADE COMMISSION BEGINS INVESTIGATION.
``(a) In General.--Whenever the International Trade Commission (in
this chapter referred to as the `Commission') begins an investigation
under section 202 with respect to an agricultural commodity, the
Commission shall immediately notify the Secretary of the investigation.
Upon receipt of the notification, the Secretary shall immediately
conduct a study of--
``(1) the number of agricultural commodity producers
producing a like or directly competitive agricultural commodity
who have been or are likely to be certified as eligible for
adjustment assistance under this chapter, and
``(2) the extent to which the adjustment of such producers
to the import competition may be facilitated through the use of
existing programs.
``(b) Report.-- <<NOTE: Deadline.>> Not later than 15 days after the
day on which the Commission makes its report under section 202(f), the
Secretary shall submit a report to the President setting forth the
findings of the study described in subsection (a). <<NOTE: Federal
Register, publication.>> Upon making the report to the President, the
Secretary shall also promptly make the report public (with the exception
of information which the Secretary determines to be confidential) and
shall have a summary of the report published in the Federal Register.
``SEC. 295. <<NOTE: 19 USC 2401d.>> BENEFIT INFORMATION TO AGRICULTURAL
COMMODITY PRODUCERS.
``(a) In General.--The Secretary shall provide full information to
agricultural commodity producers about the benefit allowances, training,
and other employment services available under this title and about the
petition and application procedures, and the appropriate filing dates,
for such allowances, training, and services. The Secretary shall provide
whatever assistance is necessary to enable groups to prepare petitions
or applications for program benefits under this title.
``(b) Notice of Benefits.--
``(1) In general.--The Secretary shall mail written notice
of the benefits available under this chapter to each
agricultural commodity producer that the Secretary has reason to
believe is covered by a certification made under this chapter.
``(2) Other notice.-- <<NOTE: Publication.>> The Secretary
shall publish notice of the benefits available under this
chapter to agricultural commodity producers that are covered by
each certification made under this chapter in newspapers of
general circulation in the areas in which such producers reside.
``(3) Other federal assistance.--The Secretary shall also
provide information concerning procedures for applying for and
receiving all other Federal assistance and services available to
workers facing economic distress.
``SEC. 296. <<NOTE: 19 USC 2401e.>> QUALIFYING REQUIREMENTS FOR
AGRICULTURAL COMMODITY PRODUCERS.
``(a) In General.--
``(1) Requirements.--Payment of a trade adjustment allowance
shall be made to an adversely affected agricultural commodity
producer covered by a certification under this chapter who files
an application for such allowance within 90 days after the date
on which the Secretary makes a determination
[[Page 116 STAT. 950]]
and issues a certification of eligibility under section 293, if
the following conditions are met:
``(A) The producer submits to the Secretary
sufficient information to establish the amount of
agricultural commodity covered by the application filed
under subsection (a) that was produced by the producer
in the most recent year.
``(B) The producer certifies that the producer has
not received cash benefits under any provision of this
title other than this chapter.
``(C) The producer's net farm income (as determined
by the Secretary) for the most recent year is less than
the producer's net farm income for the latest year in
which no adjustment assistance was received by the
producer under this chapter.
``(D) The producer certifies that the producer has
met with an Extension Service employee or agent to
obtain, at no cost to the producer, information and
technical assistance that will assist the producer in
adjusting to import competition with respect to the
adversely affected agricultural commodity, including--
``(i) information regarding the feasibility
and desirability of substituting 1 or more
alternative commodities for the adversely affected
agricultural commodity; and
``(ii) technical assistance that will improve
the competitiveness of the production and
marketing of the adversely affected agricultural
commodity by the producer, including yield and
marketing improvements.
``(2) Limitations.--
``(A) Adjusted gross income.--
``(i) In general.--Notwithstanding any other
provision of this chapter, an agricultural
commodity producer shall not be eligible for
assistance under this chapter in any year in which
the average adjusted gross income of the producer
exceeds the level set forth in section 1001D of
the Food Security Act of 1985.
``(ii) Certification.--To comply with the
limitation under subparagraph (A), an individual
or entity shall provide to the Secretary--
``(I) a certification by a certified
public accountant or another third party
that is acceptable to the Secretary that
the average adjusted gross income of the
producer does not exceed the level set
forth in section 1001D of the Food
Security Act of 1985; or
``(II) information and documentation
regarding the adjusted gross income of
the producer through other procedures
established by the Secretary.
``(B) Counter-cyclical payments.--The total amount
of payments made to an agricultural producer under this
chapter during any crop year may not exceed the
limitation on counter-cyclical payments set forth in
section 1001(c) of the Food Security Act of 1985.
``(C) Definitions.--In this subsection:
[[Page 116 STAT. 951]]
``(i) Adjusted gross income.--The term
`adjusted gross income' means adjusted gross
income of an agricultural commodity producer--
``(I) as defined in section 62 of
the Internal Revenue Code of 1986 and
implemented in accordance with
procedures established by the Secretary;
and
``(II) that is earned directly or
indirectly from all agricultural and
nonagricultural sources of an individual
or entity for a fiscal or corresponding
crop year.
``(ii) Average adjusted gross income.--
``(I) In general.--The term `average
adjusted gross income' means the average
adjusted gross income of a producer for
each of the 3 preceding taxable years.
``(II) Effective adjusted gross
income.--In the case of a producer that
does not have an adjusted gross income
for each of the 3 preceding taxable
years, the Secretary shall establish
rules that provide the producer with an
effective adjusted gross income for the
applicable year.
``(b) Amount of Cash Benefits.--
``(1) In general.--Subject to the provisions of section 298,
an adversely affected agricultural commodity producer described
in subsection (a) shall be entitled to adjustment assistance
under this chapter in an amount equal to the product of--
``(A) one-half of the difference between--
``(i) an amount equal to 80 percent of the
average of the national average price of the
agricultural commodity covered by the application
described in subsection (a) for the 5 marketing
years preceding the most recent marketing year,
and
``(ii) the national average price of the
agricultural commodity for the most recent
marketing year, and
``(B) the amount of the agricultural commodity
produced by the agricultural commodity producer in the
most recent marketing year.
``(2) Special rule for subsequent qualified years.--The
amount of cash benefits for a qualified year shall be determined
in the same manner as cash benefits are determined under
paragraph (1) except that the average national price of the
agricultural commodity shall be determined under paragraph
(1)(A)(i) by using the 5-marketing-year period used to determine
the amount of cash benefits for the first certification.
``(c) Maximum Amount of Cash Assistance.--The maximum amount of cash
benefits an agricultural commodity producer may receive in any 12-month
period shall not exceed $10,000.
``(d) Limitations on Other Assistance.--An agricultural commodity
producer entitled to receive a cash benefit under this chapter--
``(1) shall not be eligible for any other cash benefit under
this title, and
``(2) shall be entitled to employment services and training
benefits under part II of subchapter B of chapter 2.
[[Page 116 STAT. 952]]
``SEC. 297. <<NOTE: 19 USC 2401f.>> FRAUD AND RECOVERY OF OVERPAYMENTS.
``(a) In General.--
``(1) Repayment.--If the Secretary, or a court of competent
jurisdiction, determines that any person has received any
payment under this chapter to which the person was not entitled,
such person shall be liable to repay such amount to the
Secretary, except that the Secretary may waive such repayment if
the Secretary determines, in accordance with guidelines
prescribed by the Secretary, that--
``(A) the payment was made without fault on the part
of such person; and
``(B) requiring such repayment would be contrary to
equity and good conscience.
``(2) Recovery of overpayment.--Unless an overpayment is
otherwise recovered, or waived under paragraph (1), the
Secretary shall recover the overpayment by deductions from any
sums payable to such person under this chapter.
``(b) False Statement.--A person shall, in addition to any other
penalty provided by law, be ineligible for any further payments under
this chapter--
``(1) if the Secretary, or a court of competent
jurisdiction, determines that the person--
``(A) knowingly has made, or caused another to make,
a false statement or representation of a material fact;
or
``(B) knowingly has failed, or caused another to
fail, to disclose a material fact; and
``(2) as a result of such false statement or representation,
or of such nondisclosure, such person has received any payment
under this chapter to which the person was not entitled.
``(c) Notice and Determination.--Except for overpayments determined
by a court of competent jurisdiction, no repayment may be required, and
no deduction may be made, under this section until a determination under
subsection (a)(1) by the Secretary has been made, notice of the
determination and an opportunity for a fair hearing thereon has been
given to the person concerned, and the determination has become final.
``(d) Payment to Treasury.--Any amount recovered under this section
shall be returned to the Treasury of the United States.
``(e) Penalties.--Whoever makes a false statement of a material fact
knowing it to be false, or knowingly fails to disclose a material fact,
for the purpose of obtaining or increasing for himself or for any other
person any payment authorized to be furnished under this chapter shall
be fined not more than $10,000 or imprisoned for not more than 1 year,
or both.
``SEC. 298. <<NOTE: 19 USC 2401g.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated and there
are appropriated to the Department of Agriculture not to exceed
$90,000,000 for each of the fiscal years 2003 through 2007 to carry out
the purposes of this chapter.
``(b) Proportionate Reduction.--If in any year the amount
appropriated under this chapter is insufficient to meet the requirements
for adjustment assistance payable under this chapter, the amount of
assistance payable under this chapter shall be reduced
proportionately.''.
[[Page 116 STAT. 953]]
(b) <<NOTE: 19 USC 2401 note.>> Effective Date.--The amendments
made by this title shall take effect on the date that is 180 days after
the date of enactment of this Act.
SEC. 142. CONFORMING AMENDMENTS.
(a) Judicial review.--
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C.
2395(a)) is amended--
(A) by inserting ``an agricultural commodity
producer (as defined in section 291(2)) aggrieved by a
determination of the Secretary of Agriculture under
section 293, '' after ``section 251 of this title,'';
and
(B) in the second sentence of subsection (a) and in
subsections (b) and (c), by striking ``or the Secretary
of Commerce'' each place it appears and inserting ``,
the Secretary of Commerce, or the Secretary of
Agriculture''.
(b) Chapters 6.--The table of contents for title II of the Trade Act
of 1974, as amended by subparagraph (A), is amended by inserting after
the items relating to chapter 5 the following:
``Chapter 6--Adjustment Assistance for Farmers
``Sec. 291. Definitions.
``Sec. 292. Petitions; group eligibility.
``Sec. 293. Determinations by Secretary of Agriculture.
``Sec. 294. Study by Secretary of Agriculture when International Trade
Commission begins investigation.
``Sec. 295. Benefit information to agricultural commodity producers.
``Sec. 296. Qualifying requirements for agricultural commodity
producers.
``Sec. 297. Fraud and recovery of overpayments.
``Sec. 298. Authorization of appropriations.''.
SEC. 143. <<NOTE: 19 USC 2251 note.>> STUDY ON TAA FOR FISHERMEN.
Not <<NOTE: Deadline.>> later than 1 year after the date of
enactment of this Act, the Secretary of Commerce shall conduct a study
and report to Congress regarding whether a trade adjustment assistance
program is appropriate and feasible for fishermen. For purposes of the
preceding sentence, the term ``fishermen'' means any person who is
engaged in commercial fishing or is a United States fish processor.
Subtitle D--Effective Date
SEC. 151. <<NOTE: 19 USC note prec. 2271.>> EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in sections 123(c) and
141(b), and subsections (b), (c), and (d) of this section, the
amendments made by this division shall apply to petitions for
certification filed under chapter 2 or 3 of title II of the Trade Act of
1974 on or after the date that is 90 days after the date of enactment of
this Act.
(b) Workers Certified as Eligible Before Effective Date.--
Notwithstanding subsection (a), a worker shall continue to receive (or
be eligible to receive) trade adjustment assistance and other benefits
under chapter 2 of title II of the Trade Act of 1974, as in effect on
September 30, 2001, for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on such date, if
on or before such date, the worker--
(1) was certified as eligible for trade adjustment
assistance benefits under such chapter as in effect on such
date; and
[[Page 116 STAT. 954]]
(2) would otherwise be eligible to receive trade adjustment
assistance benefits under such chapter as in effect on such
date.
(c) Workers Who Became Eligible During Qualified Period.--
(1) In general.--Notwithstanding subsection (a) or any other
provision of law, including section 285 of the Trade Act of
1974, any worker who would have been eligible to receive trade
adjustment assistance or other benefits under chapter 2 of title
II of the Trade Act of 1974 during the qualified period if such
chapter 2 had been in effect during such period, shall be
eligible to receive trade adjustment assistance and other
benefits under chapter 2 of title II of the Trade Act of 1974,
as in effect on September 30, 2001, for any week during the
qualified period for which the worker meets the eligibility
requirements of such chapter 2 as in effect on September 30,
2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on January
11, 2002, and ending on the date that is 90 days after the date
of enactment of this Act.
(d) Adjustment Assistance for Firms.--
(1) In general.--Notwithstanding subsection (a) or any other
provision of law, including section 285 of the Trade Act of
1974, and except as provided in paragraph (2), any firm that
would have been eligible to receive adjustment assistance under
chapter 3 of title II of the Trade Act if 1974 during the
qualified period if such chapter 3 had been in effect during
such period, shall be eligible to receive adjustment assistance
under chapter 3 of title II of the Trade Act of 1974, as in
effect on September 30, 2001, for any week during the qualified
period for which the firm meets the eligibility requirements of
such chapter 3 as in effect on September 30, 2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on October
1, 2001, and ending on the date that is 90 days after the date
of enactment of this Act.
TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS RECEIVING A
TRADE READJUSTMENT ALLOWANCE OR A BENEFIT FROM THE PENSION
BENEFIT GUARANTY CORPORATION.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits) is
amended by redesignating section 35 as section 36 and inserting after
section 34 the following new section:
``SEC. 35. <<NOTE: 26 USC 35.>> HEALTH INSURANCE COSTS OF ELIGIBLE
INDIVIDUALS.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by subtitle A an amount
equal to 65 percent of the amount paid by the taxpayer
[[Page 116 STAT. 955]]
for coverage of the taxpayer and qualifying family members under
qualified health insurance for eligible coverage months beginning in the
taxable year.
``(b) Eligible Coverage Month.--For purposes of this section--
``(1) In general.--The term `eligible coverage month' means
any month if--
``(A) as of the first day of such month, the
taxpayer--
``(i) is an eligible individual,
``(ii) is covered by qualified health
insurance, the premium for which is paid by the
taxpayer,
``(iii) does not have other specified
coverage, and
``(iv) is not imprisoned under Federal, State,
or local authority, and
``(B) such month begins more than 90 days after the
date of the enactment of the Trade Act of 2002.
``(2) Joint returns.--In the case of a joint return, the
requirements of paragraph (1)(A) shall be treated as met with
respect to any month if at least 1 spouse satisfies such
requirements.
``(c) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means--
``(A) an eligible TAA recipient,
``(B) an eligible alternative TAA recipient, and
``(C) an eligible PBGC pension recipient.
``(2) Eligible taa recipient.--The term `eligible TAA
recipient' means, with respect to any month, any individual who
is receiving for any day of such month a trade readjustment
allowance under chapter 2 of title II of the Trade Act of 1974
or who would be eligible to receive such allowance if section
231 of such Act were applied without regard to subsection
(a)(3)(B) of such section. An individual shall continue to be
treated as an eligible TAA recipient during the first month that
such individual would otherwise cease to be an eligible TAA
recipient by reason of the preceding sentence.
``(3) Eligible alternative taa recipient.--The term
`eligible alternative TAA recipient' means, with respect to any
month, any individual who--
``(A) is a worker described in section 246(a)(3)(B)
of the Trade Act of 1974 who is participating in the
program established under section 246(a)(1) of such Act,
and
``(B) is receiving a benefit for such month under
section 246(a)(2) of such Act.
An individual shall continue to be treated as an eligible
alternative TAA recipient during the first month that such
individual would otherwise cease to be an eligible alternative
TAA recipient by reason of the preceding sentence.
``(4) Eligible pbgc pension recipient.--The term `eligible
PBGC pension recipient' means, with respect to any month, any
individual who--
``(A) has attained age 55 as of the first day of
such month, and
``(B) is receiving a benefit for such month any
portion of which is paid by the Pension Benefit Guaranty
Corporation under title IV of the Employee Retirement
Income Security Act of 1974.
[[Page 116 STAT. 956]]
``(d) Qualifying Family Member.--For purposes of this section--
``(1) In general.--The term `qualifying family member'
means--
``(A) the taxpayer's spouse, and
``(B) any dependent of the taxpayer with respect to
whom the taxpayer is entitled to a deduction under
section 151(c).
Such term does not include any individual who has other
specified coverage.
``(2) Special dependency test in case of divorced parents,
etc.--If paragraph (2) or (4) of section 152(e) applies to any
child with respect to any calendar year, in the case of any
taxable year beginning in such calendar year, such child shall
be treated as described in paragraph (1)(B) with respect to the
custodial parent (within the meaning of section 152(e)(1)) and
not with respect to the noncustodial parent.
``(e) Qualified Health Insurance.--For purposes of this section--
``(1) In general.--The term `qualified health insurance'
means any of the following:
``(A) Coverage under a COBRA continuation provision
(as defined in section 9832(d)(1)).
``(B) State-based continuation coverage provided by
the State under a State law that requires such coverage.
``(C) Coverage offered through a qualified State
high risk pool (as defined in section 2744(c)(2) of the
Public Health Service Act).
``(D) Coverage under a health insurance program
offered for State employees.
``(E) Coverage under a State-based health insurance
program that is comparable to the health insurance
program offered for State employees.
``(F) Coverage through an arrangement entered into
by a State and--
``(i) a group health plan (including such a
plan which is a multiemployer plan as defined in
section 3(37) of the Employee Retirement Income
Security Act of 1974),
``(ii) an issuer of health insurance coverage,
``(iii) an administrator, or
``(iv) an employer.
``(G) Coverage offered through a State arrangement
with a private sector health care coverage purchasing
pool.
``(H) Coverage under a State-operated health plan
that does not receive any Federal financial
participation.
``(I) Coverage under a group health plan that is
available through the employment of the eligible
individual's spouse.
``(J) In the case of any eligible individual and
such individual's qualifying family members, coverage
under individual health insurance if the eligible
individual was covered under individual health insurance
during the entire 30-day period that ends on the date
that such individual became separated from the
employment which qualified such individual for--
[[Page 116 STAT. 957]]
``(i) in the case of an eligible TAA
recipient, the allowance described in subsection
(c)(2),
``(ii) in the case of an eligible alternative
TAA recipient, the benefit described in subsection
(c)(3)(B), or
``(iii) in the case of any eligible PBGC
pension recipient, the benefit described in
subsection (c)(4)(B).
For purposes of this subparagraph, the term `individual
health insurance' means any insurance which constitutes
medical care offered to individuals other than in
connection with a group health plan and does not include
Federal- or State-based health insurance coverage.
``(2) Requirements for state-based coverage.--
``(A) In general.--The term `qualified health
insurance' does not include any coverage described in
subparagraphs (B) through (H) of paragraph (1) unless
the State involved has elected to have such coverage
treated as qualified health insurance under this section
and such coverage meets the following requirements:
``(i) Guaranteed issue.--Each qualifying
individual is guaranteed enrollment if the
individual pays the premium for enrollment or
provides a qualified health insurance costs credit
eligibility certificate described in section 7527
and pays the remainder of such premium.
``(ii) No imposition of preexisting condition
exclusion.--No pre-existing condition limitations
are imposed with respect to any qualifying
individual.
``(iii) Nondiscriminatory premium.--The total
premium (as determined without regard to any
subsidies) with respect to a qualifying individual
may not be greater than the total premium (as so
determined) for a similarly situated individual
who is not a qualifying individual.
``(iv) Same benefits.--Benefits under the
coverage are the same as (or substantially similar
to) the benefits provided to similarly situated
individuals who are not qualifying individuals.
``(B) Qualifying individual.--For purposes of this
paragraph, the term `qualifying individual' means--
``(i) an eligible individual for whom, as of
the date on which the individual seeks to enroll
in the coverage described in subparagraphs (B)
through (H) of paragraph (1), the aggregate of the
periods of creditable coverage (as defined in
section 9801(c)) is 3 months or longer and who,
with respect to any month, meets the requirements
of clauses (iii) and (iv) of subsection (b)(1)(A);
and
``(ii) the qualifying family members of such
eligible individual.
``(3) Exception.--The term `qualified health insurance'
shall not include--
``(A) a flexible spending or similar arrangement,
and
``(B) any insurance if substantially all of its
coverage is of excepted benefits described in section
9832(c).
[[Page 116 STAT. 958]]
``(f) Other Specified Coverage.--For purposes of this section, an
individual has other specified coverage for any month if, as of the
first day of such month--
``(1) Subsidized coverage.--
``(A) In general.--Such individual is covered under
any insurance which constitutes medical care (except
insurance substantially all of the coverage of which is
of excepted benefits described in section 9832(c)) under
any health plan maintained by any employer (or former
employer) of the taxpayer or the taxpayer's spouse and
at least 50 percent of the cost of such coverage
(determined under section 4980B) is paid or incurred by
the employer.
``(B) Eligible alternative taa recipients.--In the
case of an eligible alternative TAA recipient, such
individual is either--
``(i) eligible for coverage under any
qualified health insurance (other than insurance
described in subparagraph (A), (B), or (F) of
subsection (e)(1)) under which at least 50 percent
of the cost of coverage (determined under section
4980B(f)(4)) is paid or incurred by an employer
(or former employer) of the taxpayer or the
taxpayer's spouse, or
``(ii) covered under any such qualified health
insurance under which any portion of the cost of
coverage (as so determined) is paid or incurred by
an employer (or former employer) of the taxpayer
or the taxpayer's spouse.
``(C) Treatment of cafeteria plans.--For purposes of
subparagraphs (A) and (B), the cost of coverage shall be
treated as paid or incurred by an employer to the extent
the coverage is in lieu of a right to receive cash or
other qualified benefits under a cafeteria plan (as
defined in section 125(d)).
``(2) Coverage under medicare, medicaid, or schip.--Such
individual--
``(A) is entitled to benefits under part A of title
XVIII of the Social Security Act or is enrolled under
part B of such title, or
``(B) is enrolled in the program under title XIX or
XXI of such Act (other than under section 1928 of such
Act).
``(3) Certain other coverage.--Such individual--
``(A) is enrolled in a health benefits plan under
chapter 89 of title 5, United States Code, or
``(B) is entitled to receive benefits under chapter
55 of title 10, United States Code.
``(g) Special Rules.--
``(1) Coordination with advance payments of credit.--With
respect to any taxable year, the amount which would (but for
this subsection) be allowed as a credit to the taxpayer under
subsection (a) shall be reduced (but not below zero) by the
aggregate amount paid on behalf of such taxpayer under section
7527 for months beginning in such taxable year.
``(2) Coordination with other deductions.--Amounts taken
into account under subsection (a) shall not be taken into
account in determining any deduction allowed under section
162(l) or 213.
[[Page 116 STAT. 959]]
``(3) MSA distributions.--Amounts distributed from an Archer
MSA (as defined in section 220(d)) shall not be taken into
account under subsection (a).
``(4) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(5) Both spouses eligible individuals.--The spouse of the
taxpayer shall not be treated as a qualifying family member for
purposes of subsection (a), if--
``(A) the taxpayer is married at the close of the
taxable year,
``(B) the taxpayer and the taxpayer's spouse are
both eligible individuals during the taxable year, and
``(C) the taxpayer files a separate return for the
taxable year.
``(6) Marital status; certain married individuals living
apart.--Rules similar to the rules of paragraphs (3) and (4) of
section 21(e) shall apply for purposes of this section.
``(7) Insurance which covers other individuals.--For
purposes of this section, rules similar to the rules of section
213(d)(6) shall apply with respect to any contract for qualified
health insurance under which amounts are payable for coverage of
an individual other than the taxpayer and qualifying family
members.
``(8) Treatment of payments.--For purposes of this section--
``(A) Payments by secretary.--Payments made by the
Secretary on behalf of any individual under section 7527
(relating to advance payment of credit for health
insurance costs of eligible individuals) shall be
treated as having been made by the taxpayer on the first
day of the month for which such payment was made.
``(B) Payments by taxpayer.--Payments made by the
taxpayer for eligible coverage months shall be treated
as having been made by the taxpayer on the first day of
the month for which such payment was made.
``(9) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section, section 6050T, and
section 7527.''.
(b) Promotion of State High Risk Pools.--Title XXVII of the Public
Health Service Act is amended by inserting after section 2744 the
following new section:
``SEC. 2745. <<NOTE: 42 USC 300gg-45.>> PROMOTION OF QUALIFIED HIGH RISK
POOLS.
``(a) Seed Grants to States.--The Secretary shall provide from the
funds appropriated under subsection (c)(1) a grant of up to $1,000,000
to each State that has not created a qualified high risk pool as of the
date of the enactment of this section for the State's costs of creation
and initial operation of such a pool.
``(b) Matching Funds for Operation of Pools.--
``(1) In general.--In the case of a State that has
established a qualified high risk pool that--
[[Page 116 STAT. 960]]
``(A) restricts premiums charged under the pool to
no more than 150 percent of the premium for applicable
standard risk rates;
``(B) offers a choice of two or more coverage
options through the pool; and
``(C) has in effect a mechanism reasonably designed
to ensure continued funding of losses incurred by the
State after the end of fiscal year 2004 in connection
with operation of the pool;
the Secretary shall provide, from the funds appropriated under
subsection (c)(2) and allotted to the State under paragraph (2),
a grant of up to 50 percent of the losses incurred by the State
in connection with the operation of the pool.
``(2) Allotment.--The amounts appropriated under subsection
(c)(2) for a fiscal year shall be made available to the States
in accordance with a formula that is based upon the number of
uninsured individuals in the States.
``(c) Funding.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are authorized and
appropriated--
``(1) $20,000,000 for fiscal year 2003 to carry out
subsection (a); and
``(2) $40,000,000 for each of fiscal years 2003 and 2004 to
carry out subsection (b).
Funds appropriated under this subsection for a fiscal year shall remain
available for obligation through the end of the following fiscal year.
Nothing in this section shall be construed as providing a State with an
entitlement to a grant under this section.
``(d) Qualified High Risk Pool and State Defined.--For purposes of
this section, the term `qualified high risk pool' has the meaning given
such term in section 2744(c)(2) and the term `State' means any of the 50
States and the District of Columbia.''.
(c) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 35 of such Code''.
(2) The table of sections for subpart C of part IV of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking the last item and inserting the following new items:
``Sec. 35. Health insurance costs of eligible
individuals.
``Sec. 36. Overpayments of tax.''.
(d) <<NOTE: 26 USC 35 note.>> Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2001.
(2) State high risk pools.--The amendment made by subsection
(b) shall take effect on the date of the enactment of this Act.
SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF
ELIGIBLE INDIVIDUALS.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by adding at the end
the following new section:
[[Page 116 STAT. 961]]
``SEC. 7527. <<NOTE: 26 USC 7527.>> ADVANCE PAYMENT OF CREDIT FOR HEALTH
INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
``(a) General <<NOTE: Deadline.>> Rule.--Not later than August 1,
2003, the Secretary shall establish a program for making payments on
behalf of certified individuals to providers of qualified health
insurance (as defined in section 35(e)) for such individuals.
``(b) Limitation on Advance Payments During any Taxable Year.--The
Secretary may make payments under subsection (a) only to the extent that
the total amount of such payments made on behalf of any individual
during the taxable year does not exceed 65 percent of the amount paid by
the taxpayer for coverage of the taxpayer and qualifying family members
under qualified health insurance for eligible coverage months beginning
in the taxable year.
``(c) Certified Individual.--For purposes of this section, the term
`certified individual' means any individual for whom a qualified health
insurance costs credit eligibility certificate is in effect.
``(d) Qualified Health Insurance Costs Credit Eligibility
Certificate.--For purposes of this section, the term `qualified health
insurance costs credit eligibility certificate' means any written
statement that an individual is an eligible individual (as defined in
section 35(c)) if such statement provides such information as the
Secretary may require for purposes of this section and--
``(1) in the case of an eligible TAA recipient (as defined
in section 35(c)(2)) or an eligible alternative TAA recipient
(as defined in section 35(c)(3)), is certified by the Secretary
of Labor (or by any other person or entity designated by the
Secretary), or
``(2) in the case of an eligible PBGC pension recipient (as
defined in section 35(c)(4)), is certified by the Pension
Benefit Guaranty Corporation (or by any other person or entity
designated by the Secretary).''.
(b) Disclosure of Return Information for Purposes of Carrying out a
Program for Advance Payment of Credit for Health Insurance Costs of
Eligible Individuals.--
(1) In general.-- <<NOTE: 26 USC 6103.>> Subsection (l) of
section 6103 of such Code (relating to disclosure of returns and
return information for purposes other than tax administration)
is amended by adding at the end the following new paragraph:
``(18) Disclosure of return information for purposes of
carrying out a program for advance payment of credit for health
insurance costs of eligible individuals.--The Secretary may
disclose to providers of health insurance for any certified
individual (as defined in section 7527(c)) return information
with respect to such certified individual only to the extent
necessary to carry out the program established by section 7527
(relating to advance payment of credit for health insurance
costs of eligible individuals).''.
(2) Procedures and recordkeeping related to disclosures.--
Subsection (p) of such section is amended--
(A) in paragraph (3)(A) by striking ``or (17)'' and
inserting ``(17), or (18)'', and
(B) in paragraph (4) by inserting ``or (17)'' after
``any other person described in subsection (l)(16)''
each place it appears.
(3) Unauthorized inspection of returns or return
information.--Section 7213A(a)(1)(B) of such Code <<NOTE: 26 USC
7213A.>> is amended
[[Page 116 STAT. 962]]
by striking ``section 6103(n)'' and inserting ``subsection
(l)(18) or (n) of section 6103''.
(c) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 (relating to
information concerning transactions with other persons) is
amended by inserting after section 6050S the following new
section:
``SEC. 6050T. <<NOTE: 26 USC 6050T.>> RETURNS RELATING TO CREDIT FOR
HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.
``(a) Requirement of Reporting.--Every person who is entitled to
receive payments for any month of any calendar year under section 7527
(relating to advance payment of credit for health insurance costs of
eligible individuals) with respect to any certified individual (as
defined in section 7527(c)) shall, at such time as the Secretary may
prescribe, make the return described in subsection (b) with respect to
each such individual.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name, address, and TIN of each individual
referred to in subsection (a),
``(B) the number of months for which amounts were
entitled to be received with respect to such individual
under section 7527 (relating to advance payment of
credit for health insurance costs of eligible
individuals),
``(C) the amount entitled to be received for each
such month, and
``(D) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With Respect to Whom
Information Is Required.--Every person required to make a return under
subsection (a) shall furnish to each individual whose name is required
to be set forth in such return a written statement showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact for
such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required <<NOTE: Deadline.>> under the preceding
sentence shall be furnished on or before January 31 of the year
following the calendar year for which the return under subsection (a) is
required to be made.''.
(2) Assessable penalties.--
(A) Subparagraph (B) <<NOTE: 26 USC 6724.>> of
section 6724(d)(1) of such Code (relating to
definitions) is amended by redesignating clauses (xi)
through (xvii) as clauses (xii) through (xviii),
respectively, and by inserting after clause (x) the
following new clause:
``(xi) section 6050T (relating to returns
relating to credit for health insurance costs of
eligible individuals),''.
(B) Paragraph (2) of section 6724(d) of such Code is
amended by striking ``or'' at the end of subparagraph
(Z),
[[Page 116 STAT. 963]]
by striking the period at the end of subparagraph (AA)
and inserting ``, or'', and by adding after subparagraph
(AA) the following new subparagraph:
``(BB) section 6050T (relating to returns relating
to credit for health insurance costs of eligible
individuals).''.
(d) Clerical Amendments.--
(1) Advance payment.--The table of sections for chapter 77
of the Internal Revenue Code of 1986 is amended by adding at the
end the following new item:
``Sec. 7527. Advance payment of credit for health
insurance costs of eligible
individuals.''.
(2) Information reporting.--The table of sections for
subpart B of part III of subchapter A of chapter 61 of such Code
is amended by inserting after the item relating to section 6050S
the following new item:
``Sec. 6050T. Returns relating to credit for health
insurance costs of eligible
individuals.''.
(e) Effective <<NOTE: 26 USC 6050T note.>> Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 203. HEALTH INSURANCE ASSISTANCE FOR ELIGIBLE INDIVIDUALS.
(a) Eligibility for Grants.--Section 173(a) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(4) from funds appropriated under section 174(c)--
``(A) to a State or entity (as defined in section
173(c)(1)(B)) to carry out subsection (f), including
providing assistance to eligible individuals; and
``(B) to a State or entity (as so defined) to carry
out subsection (g), including providing assistance to
eligible individuals.''.
(b) Use of Funds for Health Insurance Coverage.--Section 173 of the
Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended by adding
at the end the following:
``(f) Health Insurance Coverage Assistance for Eligible
Individuals.--
``(1) In general.--Funds made available to a State or entity
under paragraph (4)(A) of subsection (a) may be used by the
State or entity for the following:
``(A) Health insurance coverage.--To assist an
eligible individual and such individual's qualifying
family members in enrolling in qualified health
insurance.
``(B) Administrative and start-up expenses.--To pay
the administrative expenses related to the enrollment of
eligible individuals and such individuals' qualifying
family members in qualified health insurance,
including--
``(i) eligibility verification activities;
``(ii) the notification of eligible
individuals of available qualified health
insurance options;
``(iii) processing qualified health insurance
costs credit eligibility certificates provided for
under section 7527 of the Internal Revenue Code of
1986;
[[Page 116 STAT. 964]]
``(iv) providing assistance to eligible
individuals in enrolling in qualified health
insurance;
``(v) the development or installation of
necessary data management systems; and
``(vi) any other expenses determined
appropriate by the Secretary, including start-up
costs and on going administrative expenses to
carry out clauses (iv) through (ix) of paragraph
(2)(A).
``(2) Qualified health insurance.--For purposes of this
subsection and subsection (g)--
``(A) In general.--The term `qualified health
insurance' means any of the following:
``(i) Coverage under a COBRA continuation
provision (as defined in section 733(d)(1) of the
Employee Retirement Income Security Act of 1974).
``(ii) State-based continuation coverage
provided by the State under a State law that
requires such coverage.
``(iii) Coverage offered through a qualified
State high risk pool (as defined in section
2744(c)(2) of the Public Health Service Act).
``(iv) Coverage under a health insurance
program offered for State employees.
``(v) Coverage under a State-based health
insurance program that is comparable to the health
insurance program offered for State employees.
``(vi) Coverage through an arrangement entered
into by a State and--
``(I) a group health plan (including
such a plan which is a multiemployer
plan as defined in section 3(37) of the
Employee Retirement Income Security Act
of 1974),
``(II) an issuer of health insurance
coverage,
``(III) an administrator, or
``(IV) an employer.
``(vii) Coverage offered through a State
arrangement with a private sector health care
coverage purchasing pool.
``(viii) Coverage under a State-operated
health plan that does not receive any Federal
financial participation.
``(ix) Coverage under a group health plan that
is available through the employment of the
eligible individual's spouse.
``(x) In the case of any eligible individual
and such individual's qualifying family members,
coverage under individual health insurance if the
eligible individual was covered under individual
health insurance during the entire 30-day period
that ends on the date that such individual became
separated from the employment which qualified such
individual for--
``(I) in the case of an eligible TAA
recipient, the allowance described in
section 35(c)(2) of the Internal Revenue
Code of 1986,
``(II) in the case of an eligible
alternative TAA recipient, the benefit
described in section 35(c)(3)(B) of such
Code, or
[[Page 116 STAT. 965]]
``(III) in the case of any eligible
PBGC pension recipient, the benefit
described in section 35(c)(4)(B) of such
Code.
For purposes of this clause, the term `individual
health insurance' means any insurance which
constitutes medical care offered to individuals
other than in connection with a group health plan
and does not include Federal- or State-based
health insurance coverage.
``(B) Requirements for state-based coverage.--
``(i) In general.--The term `qualified health
insurance' does not include any coverage described
in clauses (ii) through (viii) of subparagraph (A)
unless the State involved has elected to have such
coverage treated as qualified health insurance
under this paragraph and such coverage meets the
following requirements:
``(I) Guaranteed issue.--Each
qualifying individual is guaranteed
enrollment if the individual pays the
premium for enrollment or provides a
qualified health insurance costs credit
eligibility certificate described in
section 7527 of the Internal Revenue
Code of 1986 and pays the remainder of
such premium.
``(II) No imposition of preexisting
condition exclusion.--No pre-existing
condition limitations are imposed with
respect to any qualifying individual.
``(III) Nondiscriminatory premium.--
The total premium (as determined without
regard to any subsidies) with respect to
a qualifying individual may not be
greater than the total premium (as so
determined) for a similarly situated
individual who is not a qualifying
individual.
``(IV) Same benefits.--Benefits
under the coverage are the same as (or
substantially similar to) the benefits
provided to similarly situated
individuals who are not qualifying
individuals.
``(ii) Qualifying individual.--For purposes of
this subparagraph, the term `qualifying
individual' means--
``(I) an eligible individual for
whom, as of the date on which the
individual seeks to enroll in clauses
(ii) through (viii) of subparagraph (A),
the aggregate of the periods of
creditable coverage (as defined in
section 9801(c) of the Internal Revenue
Code of 1986) is 3 months or longer and
who, with respect to any month, meets
the requirements of clauses (iii) and
(iv) of section 35(b)(1)(A) of such
Code; and
``(II) the qualifying family members
of such eligible individual.
``(C) Exception.--The term `qualified health
insurance' shall not include--
``(i) a flexible spending or similar
arrangement, and
``(ii) any insurance if substantially all of
its coverage is of excepted benefits described in
section 733(c)
[[Page 116 STAT. 966]]
of the Employee Retirement Income Security Act of
1974.
``(3) Availability of funds.--
``(A) Expedited procedures.--With respect to
applications submitted by States or entities for grants
under this subsection, the Secretary shall--
``(i) <<NOTE: Deadline.>> not later than 15
days after the date on which the Secretary
receives a completed application from a State or
entity, notify the State or entity of the
determination of the Secretary with respect to the
approval or disapproval of such application;
``(ii) in the case of an application of a
State or other entity that is disapproved by the
Secretary, provide technical assistance, at the
request of the State or entity, in a timely manner
to enable the State or entity to submit an
approved application; and
``(iii) develop procedures to expedite the
provision of funds to States and entities with
approved applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(A) to carry out subsection (a)(4)(A)
are available to States and entities throughout the
period described in section 174(c)(2)(A).
``(4) Eligible individual defined.--For purposes of this
subsection and subsection (g), the term `eligible individual'
means--
``(A) an eligible TAA recipient (as defined in section
35(c)(2) of the Internal Revenue Code of 1986),
``(B) an eligible alternative TAA recipient (as
defined in section 35(c)(3) of the Internal Revenue Code
of 1986), and
``(C) an eligible PBGC pension recipient (as defined
in section 35(c)(4) of the Internal Revenue Code of
1986),
who, as of the first day of the month, does not have other
specified coverage and is not imprisoned under Federal, State,
or local authority.
``(5) Qualifying family member defined.--For purposes of
this subsection and subsection (g)--
``(A) In general.--The term `qualifying family
member' means--
``(i) the eligible individual's spouse, and
``(ii) any dependent of the eligible
individual with respect to whom the individual is
entitled to a deduction under section 151(c) of
the Internal Revenue Code of 1986.
Such term does not include any individual who has other
specified coverage.
``(B) Special dependency test in case of divorced
parents, etc.--If paragraph (2) or (4) of section 152(e)
of such Code applies to any child with respect to any
calendar year, in the case of any taxable year beginning
in such calendar year, such child shall be treated as
described in subparagraph (A)(ii) with respect to the
custodial parent (within the meaning of section
152(e)(1) of such Code) and not with respect to the
noncustodial parent.
[[Page 116 STAT. 967]]
``(6) State.--For purposes of this subsection and subsection
(g), the term `State' includes an entity as defined in
subsection (c)(1)(B).
``(7) Other specified coverage.--For purposes of this
subsection, an individual has other specified coverage for any
month if, as of the first day of such month--
``(A) Subsidized coverage.--
``(i) In general.--Such individual is covered
under any insurance which constitutes medical care
(except insurance substantially all of the
coverage of which is of excepted benefits
described in section 9832(c) of the Internal
Revenue Code of 1986) under any health plan
maintained by any employer (or former employer) of
the taxpayer or the taxpayer's spouse and at least
50 percent of the cost of such coverage
(determined under section 4980B of such Code) is
paid or incurred by the employer.
``(ii) Eligible alternative taa recipients.--
In the case of an eligible alternative TAA
recipient (as defined in section 35(c)(3) of the
Internal Revenue Code of 1986), such individual is
either--
``(I) eligible for coverage under
any qualified health insurance (other
than insurance described in clause (i),
(ii), or (vi) of paragraph (2)(A)) under
which at least 50 percent of the cost of
coverage (determined under section
4980B(f)(4) of such Code) is paid or
incurred by an employer (or former
employer) of the taxpayer or the
taxpayer's spouse, or
``(II) covered under any such
qualified health insurance under which
any portion of the cost of coverage (as
so determined) is paid or incurred by an
employer (or former employer) of the
taxpayer or the taxpayer's spouse.
``(iii) Treatment of cafeteria plans.--For
purposes of clauses (i) and (ii), the cost of
coverage shall be treated as paid or incurred by
an employer to the extent the coverage is in lieu
of a right to receive cash or other qualified
benefits under a cafeteria plan (as defined in
section 125(d) of the Internal Revenue Code of
1986).
``(B) Coverage under medicare, medicaid, or schip.--
Such individual--
``(i) is entitled to benefits under part A of
title XVIII of the Social Security Act or is
enrolled under part B of such title, or
``(ii) is enrolled in the program under title
XIX or XXI of such Act (other than under section
1928 of such Act).
``(C) Certain other coverage.--Such individual--
``(i) is enrolled in a health benefits plan
under chapter 89 of title 5, United States Code,
or
``(ii) is entitled to receive benefits under
chapter 55 of title 10, United States Code.
``(g) Interim Health Insurance Coverage and Other Assistance.--
[[Page 116 STAT. 968]]
``(1) In general.--Funds made available to a State or entity
under paragraph (4)(B) of subsection (a) may be used by the
State or entity to provide assistance and support services to
eligible individuals, including health care coverage to the
extent provided under subsection (f)(1)(A), transportation,
child care, dependent care, and income assistance.
``(2) Income support.--With respect to any income assistance
provided to an eligible individual with such funds, such
assistance shall supplement and not supplant other income
support or assistance provided under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as in effect on
the day before the effective date of the Trade Act of 2002) or
the unemployment compensation laws of the State where the
eligible individual resides.
``(3) Health insurance coverage.--With respect to any
assistance provided to an eligible individual with such funds in
enrolling in qualified health insurance, the following rules
shall apply:
``(A) The State or entity may provide assistance in
obtaining such coverage to the eligible individual and
to such individual's qualifying family members.
``(B) Such assistance shall supplement and may not
supplant any other State or local funds used to provide
health care coverage and may not be included in
determining the amount of non-Federal contributions
required under any program.
``(4) Availability of funds.--
``(A) Expedited procedures.--With respect to
applications submitted by States or entities for grants
under this subsection, the Secretary shall--
``(i) <<NOTE: Deadline.>> not later than 15
days after the date on which the Secretary
receives a completed application from a State or
entity, notify the State or entity of the
determination of the Secretary with respect to the
approval or disapproval of such application;
``(ii) in the case of an application of a
State or entity that is disapproved by the
Secretary, provide technical assistance, at the
request of the State or entity, in a timely manner
to enable the State or entity to submit an
approved application; and
``(iii) develop procedures to expedite the
provision of funds to States and entities with
approved applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under
section 174(c)(1)(B) to carry out subsection (a)(4)(B)
are available to States and entities throughout the
period described in section 174(c)(2)(B).
``(5) Inclusion of certain individuals as eligible
individuals.--For purposes of this subsection, the term
`eligible individual' includes an individual who is a member of
a group of workers certified after April 1, 2002, under chapter
2 of title II of the Trade Act of 1974 (as in effect on the day
before the effective date of the Trade Act of 2002) and is
participating in the trade adjustment allowance program under
such chapter (as so in effect) or who would be determined to be
participating in such program under such chapter (as
[[Page 116 STAT. 969]]
so in effect) if such chapter were applied without regard to
section 231(a)(3)(B) of the Trade Act of 1974 (as so in
effect).''.
(c) Authorization of Appropriations.--Section 174 of the Workforce
Investment Act of 1998 (29 U.S.C. 2919) is amended by adding at the end
the following:
``(c) Assistance for Eligible Workers.--
``(1) Authorization and appropriation for fiscal year
2002.--There are authorized to be appropriated and
appropriated--
``(A) to carry out subsection (a)(4)(A) of section
173, $10,000,000 for fiscal year 2002; and
``(B) to carry out subsection (a)(4)(B) of section
173, $50,000,000 for fiscal year 2002.
``(2) Authorization of appropriations for subsequent fiscal
years.--There are authorized to be appropriated--
``(A) to carry out subsection (a)(4)(A) of section
173, $60,000,000 for each of fiscal years 2003 through
2007; and
``(B) to carry out subsection (a)(4)(B) of section
173--
``(i) $100,000,000 for fiscal year 2003; and
``(ii) $50,000,000 for fiscal year 2004.
``(3) Availability of funds.--Funds appropriated pursuant
to--
``(A) paragraphs (1)(A) and (2)(A) for each fiscal
year shall, notwithstanding section 189(g), remain
available for obligation during the pendency of any
outstanding claim under the Trade Act of 1974, as
amended by the Trade Act of 2002; and
``(B) paragraph (1)(B) and (2)(B), for each fiscal
year shall, notwithstanding section 189(g), remain
available during the period that begins on the date of
enactment of the Trade Act of 2002 and ends on September
30, 2004.''.
(d) Conforming Amendment.--Section 132(a)(2)(A) of the Workforce
Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is amended by inserting
``, other than under subsection (a)(4), (f), and (g)'' after ``grants''.
(e) Temporary Extension of COBRA Election Period for Certain
Individuals.--
(1) ERISA amendments.--Section 605 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1165) is
amended--
(A) by inserting ``(a) In General.--'' before ``For
purposes of this part''; and
(B) by adding at the end the following:
``(b) Temporary Extension of COBRA Election Period for Certain
Individuals.--
``(1) In general.--In <<NOTE: Deadline.>> the case of a
nonelecting TAA-eligible individual and notwithstanding
subsection (a), such individual may elect continuation coverage
under this part during the 60-day period that begins on the
first day of the month in which the individual becomes a TAA-
eligible individual, but only if such election is made not later
than 6 months after the date of the TAA-related loss of
coverage.
``(2) Commencement of coverage; no reach-back.--Any
continuation coverage elected by a TAA-eligible individual under
paragraph (1) shall commence at the beginning of the
[[Page 116 STAT. 970]]
60-day election period described in such paragraph and shall not
include any period prior to such 60-day election period.
``(3) Preexisting conditions.--With respect to an individual
who elects continuation coverage pursuant to paragraph (1), the
period--
``(A) beginning on the date of the TAA-related loss
of coverage, and
``(B) ending on the first day of the 60-day election
period described in paragraph (1),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 701(c)(2), section 2701(c)(2) of
the Public Health Service Act, and section 9801(c)(2) of the
Internal Revenue Code of 1986.
``(4) Definitions.--For purposes of this subsection:
``(A) Nonelecting taa-eligible individual.--The term
`nonelecting TAA-eligible individual' means a TAA-
eligible individual who--
``(i) has a TAA-related loss of coverage; and
``(ii) did not elect continuation coverage
under this part during the TAA-related election
period.
``(B) TAA-eligible individual.--The term `TAA-
eligible individual' means--
``(i) an eligible TAA recipient (as defined in
paragraph (2) of section 35(c) of the Internal
Revenue Code of 1986), and
``(ii) an eligible alternative TAA recipient
(as defined in paragraph (3) of such section).
``(C) TAA-related election period.--The term `TAA-
related election period' means, with respect to a TAA-
related loss of coverage, the 60-day election period
under this part which is a direct consequence of such
loss.
``(D) TAA-related loss of coverage.--The term `TAA-
related loss of coverage' means, with respect to an
individual whose separation from employment gives rise
to being an TAA-eligible individual, the loss of health
benefits coverage associated with such separation.''.
(2) PHSA amendments.--Section 2205 of the Public Health
Service Act (42 U.S.C. 300bb-5) is amended--
(A) by inserting ``(a) In General.--'' before ``For
purposes of this title''; and
(B) by adding at the end the following:
``(b) Temporary Extension of COBRA Election Period for Certain
Individuals.--
``(1) In <<NOTE: Deadline.>> general.--In the case of a
nonelecting TAA-eligible individual and notwithstanding
subsection (a), such individual may elect continuation coverage
under this title during the 60-day period that begins on the
first day of the month in which the individual becomes a TAA-
eligible individual, but only if such election is made not later
than 6 months after the date of the TAA-related loss of
coverage.
``(2) Commencement of coverage; no reach-back.--Any
continuation coverage elected by a TAA-eligible individual under
paragraph (1) shall commence at the beginning of the 60-day
election period described in such paragraph and shall not
include any period prior to such 60-day election period.
[[Page 116 STAT. 971]]
``(3) Preexisting conditions.--With respect to an individual
who elects continuation coverage pursuant to paragraph (1), the
period--
``(A) beginning on the date of the TAA-related loss
of coverage, and
``(B) ending on the first day of the 60-day election
period described in paragraph (1),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 2701(c)(2), section 701(c)(2) of
the Employee Retirement Income Security Act of 1974, and section
9801(c)(2) of the Internal Revenue Code of 1986.
``(4) Definitions.--For purposes of this subsection:
``(A) Nonelecting taa-eligible individual.--The term
`nonelecting TAA-eligible individual' means a TAA-
eligible individual who--
``(i) has a TAA-related loss of coverage; and
``(ii) did not elect continuation coverage
under this part during the TAA-related election
period.
``(B) TAA-eligible individual.--The term `TAA-
eligible individual' means--
``(i) an eligible TAA recipient (as defined in
paragraph (2) of section 35(c) of the Internal
Revenue Code of 1986), and
``(ii) an eligible alternative TAA recipient
(as defined in paragraph (3) of such section).
``(C) TAA-related election period.--The term `TAA-
related election period' means, with respect to a TAA-
related loss of coverage, the 60-day election period
under this part which is a direct consequence of such
loss.
``(D) TAA-related loss of coverage.--The term `TAA-
related loss of coverage' means, with respect to an
individual whose separation from employment gives rise
to being an TAA-eligible individual, the loss of health
benefits coverage associated with such separation.''.
(3) IRC amendments.--Paragraph (5) of section 4980B(f) of
the Internal Revenue Code of <<NOTE: 26 USC 4980B.>> 1986
(relating to election) is amended by adding at the end the
following:
``(C) Temporary extension of cobra election period
for certain individuals.--
``(i) In general.--In <<NOTE: Deadline.>> the
case of a nonelecting TAA-eligible individual and
notwithstanding subparagraph (A), such individual
may elect continuation coverage under this
subsection during the 60-day period that begins on
the first day of the month in which the individual
becomes a TAA-eligible individual, but only if
such election is made not later than 6 months
after the date of the TAA-related loss of
coverage.
``(ii) Commencement of coverage; no reach-
back.--Any continuation coverage elected by a TAA-
eligible individual under clause (i) shall
commence at the beginning of the 60-day election
period described in such paragraph and shall not
include any period prior to such 60-day election
period.
``(iii) Preexisting conditions.--With respect
to an individual who elects continuation coverage
pursuant to clause (i), the period--
[[Page 116 STAT. 972]]
``(I) beginning on the date of the
TAA-related loss of coverage, and
``(II) ending on the first day of
the 60-day election period described in
clause (i),
shall be disregarded for purposes of determining
the 63-day periods referred to in section
9801(c)(2), section 701(c)(2) of the Employee
Retirement Income Security Act of 1974, and
section 2701(c)(2) of the Public Health Service
Act.
``(iv) Definitions.--For purposes of this
subsection:
``(I) Nonelecting taa-eligible
individual.--The term `nonelecting TAA-
eligible individual' means a TAA-
eligible individual who has a TAA-
related loss of coverage and did not
elect continuation coverage under this
subsection during the TAA-related
election period.
``(II) TAA-eligible individual.--The
term `TAA-eligible individual' means an
eligible TAA recipient (as defined in
paragraph (2) of section 35(c)) and an
eligible alternative TAA recipient (as
defined in paragraph (3) of such
section).
``(III) TAA-related election
period.--The term `TAA-related election
period' means, with respect to a TAA-
related loss of coverage, the 60-day
election period under this subsection
which is a direct consequence of such
loss.
``(IV) TAA-related loss of
coverage.--The term `TAA-related loss of
coverage' means, with respect to an
individual whose separation from
employment gives rise to being an TAA-
eligible individual, the loss of health
benefits coverage associated with such
separation.''.
(f) Rule of Construction.-- <<NOTE: 29 USC 2918 note.>> Nothing in
this title (or the amendments made by this title), other than provisions
relating to COBRA continuation coverage and reporting requirements,
shall be construed as creating any new mandate on any party regarding
health insurance coverage.
TITLE III--CUSTOMS <<NOTE: Customs Border Security Act of 2002.>>
REAUTHORIZATION
SEC. 301. <<NOTE: 19 USC 1654 note.>> SHORT TITLE.
This Act may be cited as the ``Customs Border Security Act of
2002''.
[[Page 116 STAT. 973]]
Subtitle A--United States Customs Service
CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL
OPERATIONS
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS,
COMMERCIAL OPERATIONS, AND AIR AND MARINE INTERDICTION.
(a) Noncommercial Operations.--Section 301(b)(1) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1))
is amended--
(1) by striking subparagraph (A), and inserting the
following:
``(A) $1,365,456,000 for fiscal year 2003.''; and
(2) by striking subparagraph (B), and inserting the
following:
``(B) $1,399,592,400 for fiscal year 2004.''.
(b) Commercial Operations.--
(1) In general.--Section 301(b)(2)(A) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)) is amended--
(A) by striking clause (i), and inserting the
following:
``(i) $1,642,602,000 for fiscal year 2003.''; and
(B) by striking clause (ii), and inserting the
following:
``(ii) $1,683,667,050 for fiscal year 2004.''.
(2) Automated <<NOTE: 19 USC 2075 note.>> commercial
environment computer system.--Of the amount made available for
each of fiscal years 2003 and 2004 under section 301(b)(2)(A) of
the Customs Procedural Reform and Simplification Act of 1978 (19
U.S.C. 2075(b)(2)(A)), as amended by paragraph (1), $308,000,000
shall be available until expended for each such fiscal year for
the development, establishment, and implementation of the
Automated Commercial Environment computer system.
(3) Reports.--Not <<NOTE: Deadline. 19 USC 2075
note.>> later than 90 days after the date of the enactment of
this Act, and not later than the end of each subsequent 90-day
period, the Commissioner of Customs shall prepare and submit to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report
demonstrating that the development and establishment of the
Automated Commercial Environment computer system is being
carried out in a cost-effective manner and meets the
modernization requirements of title VI of the North American
Free Trade Agreement Implementation Act.
(c) Air and Marine Interdiction.--Section 301(b)(3) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(3))
is amended--
(1) by striking subparagraph (A), and inserting the
following:
``(A) $170,829,000 for fiscal year 2003.''; and
(2) by striking subparagraph (B), and inserting the
following:
``(B) $175,099,725 for fiscal year 2004.''.
(d) Submission of Out-Year Budget Projections.--Section 301(a) of
the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(a)) is amended by adding at the end the following:
[[Page 116 STAT. 974]]
``(3) By not later than the date on which the President submits to
Congress the budget of the United States Government for a fiscal year,
the Commissioner of Customs shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate the projected amount of funds for the succeeding fiscal year
that will be necessary for the operations of the Customs Service as
provided for in subsection (b).''.
SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIPMENT FOR
THE UNITED STATES-MEXICO BORDER, UNITED STATES-CANADA
BORDER, AND FLORIDA AND THE GULF COAST SEAPORTS.
(a) Fiscal Year 2003.--Of the amounts made available for fiscal year
2003 under section 301(b)(1)(A) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by
section 311(a) of this Act, $90,244,000 shall be available until
expended for acquisition and other expenses associated with
implementation and deployment of antiterrorist and illicit narcotics
detection equipment along the United States-Mexico border, the United
States-Canada border, and Florida and the Gulf Coast seaports, as
follows:
(1) United states-mexico border.--For the United States-
Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays with
transmission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8 fixed-site
truck x-rays from the present energy level of 450,000
electron volts to 1,000,000 electron volts (1-MeV).
(D) $7,200,000 for 8 1-MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband detectors
(busters) to be distributed among ports where the
current allocations are inadequate.
(F) $600,000 for 50 contraband detection kits to be
distributed among all southwest border ports based on
traffic volume.
(G) $500,000 for 25 ultrasonic container inspection
units to be distributed among all ports receiving
liquid-filled cargo and to ports with a hazardous
material inspection facility.
(H) $2,450,000 for 7 automated targeting systems.
(I) $360,000 for 30 rapid tire deflator systems to
be distributed to those ports where port runners are a
threat.
(J) $480,000 for 20 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(K) $1,000,000 for 20 remote watch surveillance
camera systems at ports where there are suspicious
activities at loading docks, vehicle queues, secondary
inspection lanes, or areas where visual surveillance or
observation is obscured.
(L) $1,254,000 for 57 weigh-in-motion sensors to be
distributed among the ports with the greatest volume of
outbound traffic.
[[Page 116 STAT. 975]]
(M) $180,000 for 36 AM traffic information radio
stations, with 1 station to be located at each border
crossing.
(N) $1,040,000 for 260 inbound vehicle counters to
be installed at every inbound vehicle lane.
(O) $950,000 for 38 spotter camera systems to
counter the surveillance of customs inspection
activities by persons outside the boundaries of ports
where such surveillance activities are occurring.
(P) $390,000 for 60 inbound commercial truck
transponders to be distributed to all ports of entry.
(Q) $1,600,000 for 40 narcotics vapor and particle
detectors to be distributed to each border crossing.
(R) $400,000 for license plate reader automatic
targeting software to be installed at each port to
target inbound vehicles.
(2) United states-canada border.--For the United States-
Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container
Inspection Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays with
transmission and backscatter imaging.
(C) $3,600,000 for 4 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the
current allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(F) $240,000 for 10 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved
among ports as needed.
(G) $400,000 for 10 narcotics vapor and particle
detectors to be distributed to each border crossing
based on traffic volume.
(3) Florida and gulf coast seaports.--For Florida and the
Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container
Inspection Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays with
transmission and backscatter imaging.
(C) $7,200,000 for 8 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors
(busters) to be distributed among ports where the
current allocations are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(b) Fiscal Year 2004.--Of the amounts made available for fiscal year
2004 under section 301(b)(1)(B) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as amended by
section 311(a) of this Act, $9,000,000 shall be available until expended
for the maintenance and support of the equipment and training of
personnel to maintain and support the equipment described in subsection
(a).
(c) Acquisition of Technologically Superior Equipment; Transfer of
Funds.--
(1) In general.--The Commissioner of Customs may use amounts
made available for fiscal year 2003 under section
[[Page 116 STAT. 976]]
301(b)(1)(A) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section
311(a) of this Act, for the acquisition of equipment other than
the equipment described in subsection (a) if such other
equipment--
(A)(i) is technologically superior to the equipment
described in subsection (a); and
(ii) will achieve at least the same results at a
cost that is the same or less than the equipment
described in subsection (a); or
(B) can be obtained at a lower cost than the
equipment described in subsection (a).
(2) Transfer of funds.--Notwithstanding any other provision
of this section, the Commissioner of Customs may reallocate an
amount not to exceed 10 percent of--
(A) the amount specified in any of subparagraphs (A)
through (R) of subsection (a)(1) for equipment specified
in any other of such subparagraphs (A) through (R);
(B) the amount specified in any of subparagraphs (A)
through (G) of subsection (a)(2) for equipment specified
in any other of such subparagraphs (A) through (G); and
(C) the amount specified in any of subparagraphs (A)
through (E) of subsection (a)(3) for equipment specified
in any other of such subparagraphs (A) through (E).
SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.
As part of the annual performance plan for each of the fiscal years
2003 and 2004 covering each program activity set forth in the budget of
the United States Customs Service, as required under section 1115 of
title 31, United States Code, the Commissioner of Customs shall
establish performance goals and performance indicators, and shall comply
with all other requirements contained in paragraphs (1) through (6) of
subsection (a) of such section with respect to each of the activities to
be carried out pursuant to section 312.
CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE
SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO PREVENT CHILD
PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Customs Service $10,000,000 for fiscal year 2003 to
carry out the program to prevent child pornography/child sexual
exploitation established by the Child Cyber-Smuggling Center of the
Customs Service.
(b) Use of Amounts for Child Pornography Cyber Tipline.--Of the
amount appropriated under subsection (a), the Customs Service shall
provide 3.75 percent of such amount to the National Center for Missing
and Exploited Children for the operation of the child pornography cyber
tipline of the Center and for increased public awareness of the tipline.
[[Page 116 STAT. 977]]
CHAPTER 3--MISCELLANEOUS PROVISIONS
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED STATES-CANADA
BORDER.
Of the amount made available for fiscal year 2003 under paragraphs
(1) and (2)(A) of section 301(b) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)), as amended by section
311 of this Act, $28,300,000 shall be available until expended for the
Customs Service to hire approximately 285 additional Customs Service
officers to address the needs of the offices and ports along the United
States-Canada border.
SEC. 332. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES OF THE
CUSTOMS SERVICE.
(a) Study.--The Commissioner of Customs shall conduct a study of
current personnel practices of the Customs Service, including an
overview of performance standards and the effect and impact of the
collective bargaining process on drug interdiction efforts of the
Customs Service and a comparison of duty rotation policies of the
Customs Service and other Federal agencies that employ similarly
situated personnel.
(b) Report.-- <<NOTE: Deadline.>> Not later than 120 days after the
date of the enactment of this Act, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report
containing the results of the study conducted under subsection (a).
SEC. 333. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING
PROCEDURES OF THE CUSTOMS SERVICE.
(a) Study.--(1) The Commissioner of Customs shall conduct a study of
actions by the Customs Service to ensure that appropriate training is
being provided to Customs Service personnel who are responsible for
financial auditing of importers.
(2) In conducting the study, the Commissioner--
(A) shall specifically identify those actions taken to
comply with provisions of law that protect the privacy and trade
secrets of importers, such as section 552(b) of title 5, United
States Code, and section 1905 of title 18, United States Code;
and
(B) shall provide for public notice and comment relating to
verification of the actions described in subparagraph (A).
(b) Report.-- <<NOTE: Deadline.>> Not later than 6 months after the
date of the enactment of this Act, the Commissioner of Customs shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report
containing the results of the study conducted under subsection (a).
SEC. 334. <<NOTE: 19 USC 2082 note.>> ESTABLISHMENT AND IMPLEMENTATION
OF COST ACCOUNTING SYSTEM; REPORTS.
(a) Establishment and Implementation.--
(1) In general.-- <<NOTE: Deadline.>> Not later than
September 30, 2003, the Commissioner of Customs shall, in
accordance with the audit of the Customs Service's fiscal years
2000 and 1999 financial statements (as contained in the report
of the Office of the Inspector General of the Department of the
Treasury issued on February 23, 2001), establish and implement a
cost accounting system for expenses incurred in both commercial
and noncommercial operations of the Customs Service.
[[Page 116 STAT. 978]]
(2) Additional requirement.--The cost accounting system
described in paragraph (1) shall provide for an identification
of expenses based on the type of operation, the port at which
the operation took place, the amount of time spent on the
operation by personnel of the Customs Service, and an
identification of expenses based on any other appropriate
classification necessary to provide for an accurate and complete
accounting of the expenses.
(b) Reports.--Beginning on the date of the enactment of this Act and
ending on the date on which the cost accounting system described in
subsection (a) is fully implemented, the Commissioner of Customs shall
prepare and submit to Congress on a quarterly basis a report on the
progress of implementing the cost accounting system pursuant to
subsection (a).
SEC. 335. <<NOTE: 19 USC 1625 note.>> STUDY AND REPORT RELATING TO
TIMELINESS OF PROSPECTIVE RULINGS.
(a) Study.--The Comptroller General shall conduct a study on the
extent to which the Office of Regulations and Rulings of the Customs
Service has made improvements to decrease the amount of time to issue
prospective rulings from the date on which a request for the ruling is
received by the Customs Service.
(b) Report.-- <<NOTE: Deadline.>> Not later than 1 year after the
date of the enactment of this Act, the Comptroller General shall submit
to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report containing the results
of the study conducted under subsection (a).
(c) Definition.--In this section, the term ``prospective ruling''
means a ruling that is requested by an importer on goods that are
proposed to be imported into the United States and that relates to the
proper classification, valuation, or marking of such goods.
SEC. 336. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.
(a) Study.--The Comptroller General shall conduct a study on the
extent to which the amount of each customs user fee imposed under
section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act
of 1985 (19 U.S.C. 58c(a)) is commensurate with the level of services
provided by the Customs Service relating to the fee so imposed.
(b) Report.-- <<NOTE: Deadline.>> Not later than 120 days after the
date of the enactment of this Act, the Comptroller General shall submit
to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report in classified form
containing--
(1) the results of the study conducted under subsection (a);
and
(2) recommendations for the appropriate amount of the
customs user fees if such results indicate that the fees are not
commensurate with the level of services provided by the Customs
Service.
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.
(a) In General.--Section 13031(b)(9) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended as
follows:
(1) In subparagraph (A)--
[[Page 116 STAT. 979]]
(A) in the matter preceding clause (i), by striking
``the processing of merchandise that is informally
entered or released'' and inserting ``the processing of
letters, documents, records, shipments, merchandise, or
any other item that is valued at an amount that is less
than $2,000 (or such higher amount as the Secretary of
the Treasury may set by regulation pursuant to section
498 of the Tariff Act of 1930), except such items
entered for transportation and exportation or immediate
exportation''; and
(B) by striking clause (ii), and inserting the
following:
``(ii) Subject to the provisions of
subparagraph (B), in the case of an express
consignment carrier facility or centralized hub
facility, $.66 per individual airway bill or bill
of lading.''.
(2) By redesignating subparagraph (B) as subparagraph (C)
and inserting after subparagraph (A) the following:
``(B)(i) Beginning in fiscal year 2004, the
Secretary of the Treasury may adjust (not more than once
per fiscal year) the amount described in subparagraph
(A)(ii) to an amount that is not less than $.35 and not
more than $1.00 per individual airway bill or bill of
lading. The Secretary shall provide notice in the
Federal Register of a proposed adjustment under the
preceding sentence and the reasons therefor and shall
allow for public comment on the proposed adjustment.
``(ii) Notwithstanding section 451 of the Tariff Act
of 1930, the payment required by subparagraph (A)(ii)
shall be the only payment required for reimbursement of
the Customs Service in connection with the processing of
an individual airway bill or bill of lading in
accordance with such subparagraph and for providing
services at express consignment carrier facilities or
centralized hub facilities, except that the Customs
Service may require such facilities to cover expenses of
the Customs Service for adequate office space,
equipment, furnishings, supplies, and security.
``(iii)(I) The payment required by subparagraph
(A)(ii) and clause (ii) of this subparagraph shall be
paid on a quarterly basis by the carrier using the
facility to the Customs Service in accordance with
regulations prescribed by the Secretary of the Treasury.
``(II) 50 percent of the amount of payments received
under subparagraph (A)(ii) and clause (ii) of this
subparagraph shall, in accordance with section 524 of
the Tariff Act of 1930, be deposited in the Customs User
Fee Account and shall be used to directly reimburse each
appropriation for the amount paid out of that
appropriation for the costs incurred in providing
services to express consignment carrier facilities or
centralized hub facilities. Amounts deposited in
accordance with the preceding sentence shall be
available until expended for the provision of customs
services to express consignment carrier facilities or
centralized hub facilities.
``(III) Notwithstanding section 524 of the Tariff
Act of 1930, the remaining 50 percent of the amount of
payments received under subparagraph (A)(ii) and clause
(ii) of this subparagraph shall be paid to the Secretary
of
[[Page 116 STAT. 980]]
the Treasury, which is in lieu of the payment of fees
under subsection (a)(10) of this section.''.
(b) Effective Date.--The <<NOTE: 19 USC 58c note.>> amendments made
by subsection (a) take effect on October 1, 2002.
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is
amended by striking the second sentence and inserting the following:
``The Secretary may, by regulation, require the electronic submission of
information described in subsection (a) or any other information
required to be submitted to the Customs Service separately pursuant to
this subpart.''.
SEC. 339. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS STAFFING.
There are authorized to be appropriated to the Department of
Treasury such sums as may be necessary to provide an increase in the
annual rate of basic pay--
(1) for all journeyman Customs inspectors and Canine
Enforcement Officers who have completed at least one year's
service and are receiving an annual rate of basic pay for
positions at GS-9 of the General Schedule under section 5332 of
title 5, United States Code, from the annual rate of basic pay
payable for positions at GS-9 of the General Schedule under such
section 5332, to an annual rate of basic pay payable for
positions at GS-11 of the General Schedule under such section
5332; and
(2) for the support staff associated with the personnel
described in subparagraph (A), at the appropriate GS level of
the General Schedule under such section 5332.
CHAPTER 4--ANTITERRORISM PROVISIONS
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN GOOD FAITH.
(a) Immunity.--Section 3061 of the Revised Statutes (19 U.S.C. 482)
is amended--
(1) by striking ``Any of the officers'' and inserting ``(a)
Any of the officers''; and
(2) by adding at the end the following:
``(b) Any officer or employee of the United States conducting a
search of a person pursuant to subsection (a) shall not be held liable
for any civil damages as a result of such search if the officer or
employee performed the search in good faith and used reasonable means
while effectuating such search.''.
(b) Requirement <<NOTE: 19 USC 482 note. Deadline.>> To Post Policy
and Procedures for Searches of Passengers.--Not later than 30 days after
the date of the enactment of this Act, the Commissioner of Customs shall
ensure that at each Customs border facility appropriate notice is posted
that provides a summary of the policy and procedures of the Customs
Service for searching passengers, including a statement of the policy
relating to the prohibition on the conduct of profiling of passengers
based on gender, race, color, religion, or ethnic background.
[[Page 116 STAT. 981]]
SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, OR STAFFING
OF THE CUSTOMS SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is amended--
(1) by striking ``Whenever the President'' and inserting
``(a) Whenever the President''; and
(2) by adding at the end the following:
``(b)(1) Notwithstanding any other provision of law, the Secretary
of the Treasury, when necessary to respond to a national emergency
declared under the National Emergencies Act (50 U.S.C. 1601 et seq.) or
to a specific threat to human life or national interests, is authorized
to take the following actions on a temporary basis:
``(A) Eliminate, consolidate, or relocate any office or port
of entry of the Customs Service.
``(B) Modify hours of service, alter services rendered at
any location, or reduce the number of employees at any location.
``(C) Take any other action that may be necessary to respond
directly to the national emergency or specific threat.
``(2) Notwithstanding any other provision of law, the Commissioner
of Customs, when necessary to respond to a specific threat to human life
or national interests, is authorized to close temporarily any Customs
office or port of entry or take any other lesser action that may be
necessary to respond to the specific threat.
``(3) <<NOTE: Notification. Deadline.>> The Secretary of the
Treasury or the Commissioner of Customs, as the case may be, shall
notify the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate not later than 72 hours after
taking any action under paragraph (1) or (2).''.
SEC. 343. <<NOTE: 19 USC 2071 note.>> MANDATORY ADVANCED ELECTRONIC
INFORMATION FOR CARGO AND OTHER IMPROVED CUSTOMS REPORTING
PROCEDURES.
(a) Cargo Information.--
(1) In general.--Subject to paragraphs (2) and (3), not
later than 1 year after the date of enactment of this Act, the
Secretary shall promulgate regulations providing for the
transmission to the Customs Service, through an electronic data
interchange system, of information pertaining to cargo destined
for importation into the United States or exportation from the
United States, prior to such importation or exportation.
(2) Information required.--The information required by the
regulations promulgated pursuant to paragraph (1) under the
parameters set forth in paragraph (3) shall be such information
as the Secretary determines to be reasonably necessary to ensure
aviation, maritime, and surface transportation safety and
security pursuant to those laws enforced and administered by the
Customs Service.
(3) Parameters.--In developing regulations pursuant to
paragraph (1), the Secretary shall adhere to the following
parameters:
(A) The Secretary shall solicit comments from and
consult with a broad range of parties likely to be
affected by the regulations, including importers,
exporters, carriers, customs brokers, and freight
forwarders, among other interested parties.
[[Page 116 STAT. 982]]
(B) In general, the requirement to provide
particular information shall be imposed on the party
most likely to have direct knowledge of that
information. Where requiring information from the party
with direct knowledge of that information is not
practicable, the regulations shall take into account
how, under ordinary commercial practices, information is
acquired by the party on which the requirement is
imposed, and whether and how such party is able to
verify the information. Where information is not
reasonably verifiable by the party on which a
requirement is imposed, the regulations shall permit
that party to transmit information on the basis of what
it reasonably believes to be true.
(C) The Secretary shall take into account the
existence of competitive relationships among the parties
on which requirements to provide particular information
are imposed.
(D) Where the regulations impose requirements on
carriers of cargo, they shall take into account
differences among different modes of transportation,
including differences in commercial practices,
operational characteristics, and technological capacity
to collect and transmit information electronically.
(E) The regulations shall take into account the
extent to which the technology necessary for parties to
transmit and the Customs Service to receive and analyze
data in a timely fashion is available. To the extent
that the Secretary determines that the necessary
technology will not be widely available to particular
modes of transportation or other affected parties until
after promulgation of the regulations, the regulations
shall provide interim requirements appropriate for the
technology that is available at the time of
promulgation.
(F) The information collected pursuant to the
regulations shall be used exclusively for ensuring
aviation, maritime, and surface transportation safety
and security, and shall not be used for determining
entry or for any other commercial enforcement purposes.
(G) The regulations shall protect the privacy of
business proprietary and any other confidential
information provided to the Customs Service. However,
this parameter does not repeal, amend, or otherwise
modify other provisions of law relating to the public
disclosure of information transmitted to the Customs
Service.
(H) In determining the timing for transmittal of any
information, the Secretary shall balance likely impact
on flow of commerce with impact on aviation, maritime,
and surface transportation safety and security. With
respect to requirements that may be imposed on carriers
of cargo, the timing for transmittal of information
shall take into account differences among different
modes of transportation, as described in subparagraph
(D).
(I) Where practicable, the regulations shall avoid
imposing requirements that are redundant with one
another or that are redundant with requirements in other
provisions of law.
[[Page 116 STAT. 983]]
(J) The Secretary shall determine whether it is
appropriate to provide transition periods between
promulgation of the regulations and the effective date
of the regulations and shall prescribe such transition
periods in the regulations, as appropriate. The
Secretary may determine that different transition
periods are appropriate for different classes of
affected parties.
(K) With respect to requirements imposed on
carriers, the Secretary, in consultation with the
Postmaster General, shall determine whether it is
appropriate to impose the same or similar requirements
on shipments by the United States Postal Service. If the
Secretary determines that such requirements are
appropriate, then they shall be set forth in the
regulations.
(L) <<NOTE: Deadline.>> Not later than 60 days prior
to promulgation of the regulations, the Secretary shall
transmit to the Committees on Finance and Commerce,
Science, and Transportation of the Senate and the
Committees on Ways and Means and Transportation and
Infrastructure of the House of Representatives a report
setting forth--
(i) the proposed regulations;
(ii) an explanation of how particular
requirements in the proposed regulations meet the
needs of aviation, maritime, and surface
transportation safety and security;
(iii) an explanation of how the Secretary
expects the proposed regulations to affect the
commercial practices of affected parties; and
(iv) an explanation of how the proposed
regulations address particular comments received
from interested parties.
(b) Documentation of Waterborne Cargo.--Part II of title IV of the
Tariff Act of 1930 is amended by inserting after section 431 the
following new section:
``SEC. 431A. <<NOTE: 19 USC 1431a.>> DOCUMENTATION OF WATERBORNE CARGO.
``(a) Applicability.--This section shall apply to all cargo to be
exported that is moved by a vessel carrier from a port in the United
States.
``(b) Documentation Required.--(1) No shipper of cargo subject to
this section (including an ocean transportation intermediary that is a
non-vessel-operating common carrier (as defined in section 3(17)(B) of
the Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B)) may tender or
cause to be tendered to a vessel carrier cargo subject to this section
for loading on a vessel in a United States port, unless such cargo is
properly documented pursuant to this subsection.
``(2) For the purposes of this subsection, cargo shall be considered
properly documented if the shipper submits to the vessel carrier or its
agent a complete set of shipping documents no later than 24 hours after
the cargo is delivered to the marine terminal operator, but under no
circumstances later than 24 hours prior to departure of the vessel.
``(3) A complete set of shipping documents shall include--
``(A) for shipments for which a shipper's export declaration
is required, a copy of the export declaration or, if the shipper
files such declarations electronically in the Automated Export
[[Page 116 STAT. 984]]
System, the complete bill of lading, and the master or
equivalent shipping instructions, including the Internal
Transaction Number (ITN); or
``(B) for shipments for which a shipper's export declaration
is not required, a shipper's export declaration exemption
statement and such other documents or information as the
Secretary may by regulation prescribe.
``(4) <<NOTE: Regulations.>> The Secretary shall by regulation
prescribe the time, manner, and form by which shippers shall transmit
documents or information required under this subsection to the Customs
Service.
``(c) Loading Undocumented Cargo Prohibited.--
``(1) No marine terminal operator (as defined in section
3(14) of the Shipping Act of 1984 (46 U.S.C. App. 1702(14))) may
load, or cause to be loaded, any cargo subject to this section
on a vessel unless instructed by the vessel carrier operating
the vessel that such cargo has been properly documented in
accordance with this section.
``(2) <<NOTE: Notification.>> When cargo is booked by 1
vessel carrier to be transported on the vessel of another vessel
carrier, the booking carrier shall notify the operator of the
vessel that the cargo has been properly documented in accordance
with this section. The operator of the vessel may rely on such
notification in releasing the cargo for loading aboard the
vessel.
``(d) Reporting of Undocumented Cargo.--A vessel carrier shall
notify the Customs Service of any cargo tendered to such carrier that is
not properly documented pursuant to this section and that has remained
in the marine terminal for more than 48 hours after being delivered to
the marine terminal, and the location of the cargo in the marine
terminal. For vessel carriers that are members of vessel sharing
agreements (or any other arrangement whereby a carrier moves cargo on
another carrier's vessel), the vessel carrier accepting the booking
shall be responsible for reporting undocumented cargo, without regard to
whether it operates the vessel on which the transportation is to be
made.
``(e) Assessment of Penalties.--Whoever is found to have violated
subsection (b) of this section shall be liable to the United States for
civil penalties in a monetary amount up to the value of the cargo, or
the actual cost of the transportation, whichever is greater.
``(f) Seizure of Undocumented Cargo.--
``(1) Any cargo that is not properly documented pursuant to
this section and has remained in the marine terminal for more
than 48 hours after being delivered to the marine terminal
operator shall be subject to search, seizure, and forfeiture.
``(2) The shipper of any such cargo is liable to the marine
terminal operator and to the ocean carrier for demurrage and
other applicable charges for any undocumented cargo which has
been notified to or searched or seized by the Customs Service
for the entire period the cargo remains under the order and
direction of the Customs Service. Unless the cargo is seized by
the Customs Service and forfeited, the marine terminal operator
and the ocean carrier shall have a lien on the cargo for the
amount of the demurrage and other charges.
``(g) Effect on Other Provisions.--Nothing in this section shall be
construed, interpreted, or applied to relieve or excuse any party from
compliance with any obligation or requirement
[[Page 116 STAT. 985]]
arising under any other law, regulation, or order with regard to the
documentation or carriage of cargo.''.
(c) Secretary.--For <<NOTE: 19 USC 2071 note.>> purposes of this
section, the term ``Secretary'' means the Secretary of the Treasury. If,
at the time the regulations required by subsection (a)(1) are
promulgated, the Customs Service is no longer located in the Department
of the Treasury, then the Secretary of the Treasury shall exercise the
authority under subsection (a) jointly with the Secretary of the
Department in which the Customs Service is located.
SEC. 343A. <<NOTE: 19 USC 2071 note.>> SECURE SYSTEMS OF TRANSPORTATION.
(a) Joint Task Force.--The <<NOTE: Establishment.>> Secretary of the
Treasury shall establish a joint task force to evaluate, prototype, and
certify secure systems of transportation. The joint task force shall be
comprised of officials from the Department of Transportation and the
Customs Service, and any other officials that the Secretary deems
appropriate. The task force shall establish <<NOTE: Deadline.>> a
program to evaluate and certify secure systems of international
intermodal transport no later than 1 year after the date of enactment of
this Act. The task force shall solicit and consider input from a broad
range of interested parties.
(b) Program Requirements.--At a minimum the program referred to in
subsection (a) shall require certified systems of international
intermodal transport to be significantly more secure than existing
transportation programs, and the program shall--
(1) establish standards and a process for screening and
evaluating cargo prior to import into or export from the United
States;
(2) establish standards and a process for a system of
securing cargo and monitoring it while in transit;
(3) establish standards and a process for allowing the
United States Government to ensure and validate compliance with
the program elements; and
(4) include any other elements that the task force deems
necessary to ensure the security and integrity of the
international intermodal transport movements.
(c) Recognition of Certified Systems.--
(1) Secretary of the Treasury.--The Secretary of the
Treasury shall recognize certified systems of intermodal
transport in the requirements of a national security plan for
United States seaports, and in the provisions requiring planning
to reopen United States ports for commerce.
(2) Commissioner of Customs.--The Commissioner of Customs
shall recognize certified systems of intermodal transport in the
evaluation of cargo risk for purposes of United States imports
and exports.
(d) Report.--Within <<NOTE: Deadline.>> 1 year after the program
described in subsection (a) is implemented, the Secretary of the
Treasury shall transmit a report to the Committees on Commerce, Science,
and Transportation and Finance of the Senate and the Committees on
Transportation and Infrastructure and Ways and Means of the House of
Representatives that--
(1) evaluates the program and its requirements;
(2) states the Secretary's views as to whether any
procedure, system, or technology evaluated as part of the
program offers a higher level of security than under existing
procedures;
[[Page 116 STAT. 986]]
(3) states the Secretary's views as to the integrity of the
procedures, technology, or systems evaluated as part of the
program; and
(4) makes a recommendation with respect to whether the
program, or any procedure, system, or technology should be
incorporated in a nationwide system for certified systems of
intermodal transport.
SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND
MAIL.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 582 the following:
``SEC. 583. <<NOTE: 19 USC 1583.>> EXAMINATION OF OUTBOUND MAIL.
``(a) Examination.--
``(1) In general.--For purposes of ensuring compliance with
the Customs laws of the United States and other laws enforced by
the Customs Service, including the provisions of law described
in paragraph (2), a Customs officer may, subject to the
provisions of this section, stop and search at the border,
without a search warrant, mail of domestic origin transmitted
for export by the United States Postal Service and foreign mail
transiting the United States that is being imported or exported
by the United States Postal Service.
``(2) Provisions of law described.--The provisions of law
described in this paragraph are the following:
``(A) Section 5316 of title 31, United States Code
(relating to reports on exporting and importing monetary
instruments).
``(B) Sections 1461, 1463, 1465, and 1466, and
chapter 110 of title 18, United States Code (relating to
obscenity and child pornography).
``(C) Section 1003 of the Controlled Substances
Import and Export Act (relating to exportation of
controlled substances) (21 U.S.C. 953).
``(D) The Export Administration Act of 1979 (50
U.S.C. App. 2401 et seq.).
``(E) Section 38 of the Arms Export Control Act (22
U.S.C. 2778).
``(F) The International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.).
``(b) Search of Mail Not Sealed Against Inspection and Other Mail.--
Mail not sealed against inspection under the postal laws and regulations
of the United States, mail which bears a Customs declaration, and mail
with respect to which the sender or addressee has consented in writing
to search, may be searched by a Customs officer.
``(c) Search of Mail Sealed Against Inspection Weighing in Excess of
16 Ounces.--
``(1) In general.--Mail weighing in excess of 16 ounces sealed
against inspection under the postal laws and regulations of the United
States may be searched by a Customs officer, subject to paragraph (2),
if there is reasonable cause to suspect that such mail contains one or
more of the following:
``(A) Monetary instruments, as defined in section 1956 of
title 18, United States Code.
``(B) A weapon of mass destruction, as defined in section
2332a(b) of title 18, United States Code.
[[Page 116 STAT. 987]]
``(C) A drug or other substance listed in schedule I, II,
III, or IV in section 202 of the Controlled Substances Act (21
U.S.C. 812).
``(D) National defense and related information transmitted
in violation of any of sections 793 through 798 of title 18,
United States Code.
``(E) Merchandise mailed in violation of section 1715 or
1716 of title 18, United States Code.
``(F) Merchandise mailed in violation of any provision of
chapter 71 (relating to obscenity) or chapter 110 (relating to
sexual exploitation and other abuse of children) of title 18,
United States Code.
``(G) Merchandise mailed in violation of the Export
Administration Act of 1979 (50 U.S.C. App. 2401 et seq.).
``(H) Merchandise mailed in violation of section 38 of the
Arms Export Control Act (22 U.S.C. 2778).
``(I) Merchandise mailed in violation of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
``(J) Merchandise mailed in violation of the Trading with
the Enemy Act (50 U.S.C. App. 1 et seq.).
``(K) Merchandise subject to any other law enforced by the
Customs Service.
``(2) Limitation.--No person acting under the authority of
paragraph (1) shall read, or authorize any other person to read,
any correspondence contained in mail sealed against inspection
unless prior to so reading--
``(A) a search warrant has been issued pursuant to
rule 41 of the Federal Rules of Criminal Procedure; or
``(B) the sender or addressee has given written
authorization for such reading.
``(d) Search of Mail Sealed Against Inspection Weighing 16 Ounces or
Less.--Notwithstanding any other provision of this section, subsection
(a)(1) shall not apply to mail weighing 16 ounces or less sealed against
inspection under the postal laws and regulations of the United
States.''.
(b) Certification by Secretary.--Not <<NOTE: Deadline. 19 USC 1583
note.>> later than 3 months after the date of enactment of this section,
the Secretary of State shall determine whether the application of
section 583 of the Tariff Act of 1930 to foreign mail transiting the
United States that is imported or exported by the United States Postal
Service is being handled in a manner consistent with international law
and any international obligation of the United States. Section 583 of
such Act shall not apply to such foreign mail unless the Secretary
certifies to Congress that the application of such section 583 is
consistent with international law and any international obligation of
the United States.
(c) Effective <<NOTE: 19 USC 1583 note.>> Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect on the date of enactment of this Act.
(2) Certification with respect to foreign mail.--The
provisions of section 583 of the Tariff Act of 1930 relating to
foreign mail transiting the United States that is imported or
exported by the United States Postal Service shall not take
effect until the Secretary of State certifies to Congress,
pursuant to subsection (b), that the application of such section
583
[[Page 116 STAT. 988]]
is consistent with international law and any international
obligation of the United States.
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF CUSTOMS
OPERATIONS IN NEW YORK CITY.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated for
the reestablishment of operations of the Customs Service in New
York, New York, such sums as may be necessary for fiscal year
2003.
(2) Operations described.--The operations referred to in
paragraph (1) include, but are not limited to, the following:
(A) Operations relating to the Port Director of New
York City, the New York Customs Management Center
(including the Director of Field Operations), and the
Special Agent-In-Charge for New York.
(B) Commercial operations, including textile
enforcement operations and salaries and expenses of--
(i) trade specialists who determine the origin
and value of merchandise;
(ii) analysts who monitor the entry data into
the United States of textiles and textile
products; and
(iii) Customs officials who work with foreign
governments to examine textile makers and verify
entry information.
(b) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under subsection (a) are authorized to
remain available until expended.
CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS
SEC. 351. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY CUSTOMS
SERVICE.
(a) GAO Audit.--The Comptroller General of the United States shall
conduct an audit of the system established and carried out by the
Customs Service to monitor transshipment.
(b) Report.--Not <<NOTE: Deadline.>> later than 9 months after the
date of enactment of this Act, the Comptroller General shall submit to
the Committee on Ways and Means of the House of Representatives and
Committee on Finance of the Senate a report that contains the results of
the study conducted under subsection (a), including recommendations for
improvements to the transshipment monitoring system if applicable.
(c) Transshipment Described.--Transshipment within the meaning of
this section has occurred when preferential treatment under any
provision of law has been claimed for a textile or apparel article on
the basis of material false information concerning the country of
origin, manufacture, processing, or assembly of the article or any of
its components. For purposes of the preceding sentence, false
information is material if disclosure of the true information would mean
or would have meant that the article is or was ineligible for
preferential treatment under the provision of law in question.
SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT
ENFORCEMENT OPERATIONS.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated for
transshipment (as described in section 351(c)) enforcement
[[Page 116 STAT. 989]]
operations, outreach, and education of the Customs Service
$9,500,000 for fiscal year 2003.
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are
authorized to remain available until expended.
(b) Use of Funds.--Of the amount appropriated pursuant to the
authorization of appropriations under subsection (a), the following
amounts are authorized to be made available for the following purposes:
(1) Import specialists.--$1,463,000 for 21 Customs import
specialists to be assigned to selected ports for documentation
review to support detentions and exclusions and 1 additional
Customs import specialist assigned to the Customs headquarters
textile program to administer the program and provide oversight.
(2) Inspectors.--$652,080 for 10 Customs inspectors to be
assigned to selected ports to examine targeted high-risk
shipments.
(3) Investigators.--(A) $1,165,380 for 10 investigators to
be assigned to selected ports to investigate instances of
smuggling, quota and trade agreement circumvention, and use of
counterfeit visas to enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned to the
Customs headquarters textile program to coordinate and ensure
implementation of textile production verification team results
from an investigation perspective.
(4) International trade specialists.--$226,500 for 3
international trade specialists to be assigned to Customs
headquarters to be dedicated to illegal textile transshipment
policy issues, outreach, education, and other free trade
agreement enforcement issues.
(5) Permanent import specialists for hong kong.--$500,000
for 2 permanent import specialist positions and $500,000 for 2
investigators to be assigned to Hong Kong to work with Hong Kong
and other government authorities in Southeast Asia to assist
such authorities in pursuing proactive enforcement of bilateral
trade agreements.
(6) Various permanent trade positions.--$3,500,000 for the
following:
(A) 2 permanent positions to be assigned to the
Customs attache office in Central America to address
trade enforcement issues for that region.
(B) 2 permanent positions to be assigned to the
Customs attache office in South Africa to address trade
enforcement issues pursuant to the African Growth and
Opportunity Act (title I of Public Law 106-200).
(C) 4 permanent positions to be assigned to the
Customs attache office in Mexico to address the threat
of illegal textile transshipment through Mexico and
other related issues under the North American Free Trade
Agreement Act.
(D) 2 permanent positions to be assigned to the
Customs attache office in Seoul, South Korea, to address
the trade issues in the geographic region.
(E) 2 permanent positions to be assigned to the
proposed Customs attache office in New Delhi, India, to
[[Page 116 STAT. 990]]
address the threat of illegal textile transshipment and
other trade enforcement issues.
(F) 2 permanent positions to be assigned to the
Customs attache office in Rome, Italy, to address trade
enforcement issues in the geographic region, including
issues under free trade agreements with Jordan and
Israel.
(7) Attorneys.--$179,886 for 2 attorneys for the Office of
the Chief Counsel of the Customs Service to pursue cases
regarding illegal textile transshipment.
(8) Auditors.--$510,000 for 6 Customs auditors to perform
internal control reviews and document and record reviews of
suspect importers.
(9) Additional travel funds.--$250,000 for deployment of
additional textile production verification teams to sub-Saharan
Africa.
(10) Training.--(A) $75,000 for training of Customs
personnel.
(B) $200,000 for training for foreign counterparts in risk
management analytical techniques and for teaching factory
inspection techniques, model law development, and enforcement
techniques.
(11) Outreach.--$60,000 for outreach efforts to United
States importers.
SEC. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.
Of the amount made available for fiscal year 2003 under section
301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of
1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section 311(b)(1) of this
Act, $1,317,000 shall be available until expended for the Customs
Service to provide technical assistance to help sub-Saharan African
countries develop and implement effective visa and anti-transshipment
systems as required by the African Growth and Opportunity Act (title I
of Public Law 106-200), as follows:
(1) Travel funds.--$600,000 for import specialists, special
agents, and other qualified Customs personnel to travel to sub-
Saharan African countries to provide technical assistance in
developing and implementing effective visa and anti-
transshipment systems.
(2) Import specialists.--$266,000 for 4 import specialists
to be assigned to Customs headquarters to be dedicated to
providing technical assistance to sub-Saharan African countries
for developing and implementing effective visa and anti-
transshipment systems.
(3) Data reconciliation analysts.--$151,000 for 2 data
reconciliation analysts to review apparel shipments.
(4) Special agents.--$300,000 for 2 special agents to be
assigned to Customs headquarters to be available to provide
technical assistance to sub-Saharan African countries in the
performance of investigations and other enforcement initiatives.
[[Page 116 STAT. 991]]
Subtitle B--Office of the United States Trade Representative
SEC. 361. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 141(g)(1) of the Trade Act of 1974 (19
U.S.C. 2171(g)(1)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``not to exceed'';
(B) by striking clause (i), and inserting the
following:
``(i) $32,300,000 for fiscal year 2003.''; and
(C) by striking clause (ii), and inserting the
following:
``(ii) $33,108,000 for fiscal year 2004.''; and
(2) in subparagraph (B)--
(A) in clause (i), by adding ``and'' at the end;
(B) by striking clause (ii); and
(C) by redesignating clause (iii) as clause (ii).
(b) Submission of Out-Year Budget Projections.--Section 141(g) of
the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by adding at the
end the following:
``(3) By <<NOTE: Deadline.>> not later than the date on which the
President submits to Congress the budget of the United States Government
for a fiscal year, the United States Trade Representative shall submit
to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate the projected amount of funds for
the succeeding fiscal year that will be necessary for the Office to
carry out its functions.''.
(c) Additional Staff for Office of Assistant U.S. Trade
Representative for Congressional Affairs.--
(1) In general.--There is authorized to be appropriated such
sums as may be necessary for fiscal year 2003 for the salaries
and expenses of two additional legislative specialist employee
positions within the Office of the Assistant United States Trade
Representative for Congressional Affairs.
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are
authorized to remain available until expended.
Subtitle C--United States International Trade Commission
SEC. 371. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 330(e)(2)(A) of the Tariff Act of 1930 (19
U.S.C. 1330(e)(2)(A)) is amended--
(1) by striking clause (i), and inserting the following:
``(i) $54,000,000 for fiscal year 2003.''; and
(2) by striking clause (ii), and inserting the following:
``(ii) $57,240,000 for fiscal year 2004.''.
(b) Submission of Out-Year Budget Projections.--Section 330(e) of
the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended by adding at
the end the following:
``(4) <<NOTE: Deadline.>> By not later than the date on which the
President submits to Congress the budget of the United States Government
for a fiscal year, the Commission shall submit to the Committee on
[[Page 116 STAT. 992]]
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate the projected amount of funds for the succeeding
fiscal year that will be necessary for the Commission to carry out its
functions.''.
Subtitle D--Other trade provisions
SEC. 381. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT FROM DUTY
ACQUIRED ABROAD BY UNITED STATES RESIDENTS.
(a) In General.--Subheading 9804.00.65 of the Harmonized Tariff
Schedule of the United States is amended in the article description
column by striking ``$400'' and inserting ``$800''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect 90 days after the date of the enactment of this Act.
SEC. 382. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is
amended by adding at the end the following:
``(6)(A) If during the course of any audit concluded under
this subsection, the Customs Service identifies overpayments of
duties or fees or over-declarations of quantities or values that
are within the time period and scope of the audit that the
Customs Service has defined, then in calculating the loss of
revenue or monetary penalties under section 592, the Customs
Service shall treat the overpayments or over-declarations on
finally liquidated entries as an offset to any underpayments or
underdeclarations also identified on finally liquidated entries,
if such overpayments or over-declarations were not made by the
person being audited for the purpose of violating any provision
of law.
``(B) Nothing in this paragraph shall be construed to
authorize a refund not otherwise authorized under section
520.''.
SEC. 383. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is
amended to read as follows:
``(a) Deposit of Estimated Duties and Fees.--Unless the entry is
subject to a periodic payment or the merchandise is entered for
warehouse or transportation, or under bond, the importer of record shall
deposit with the Customs Service at the time of entry, or at such later
time as the Secretary may prescribe by regulation (but not later than 10
working days after entry or release) the amount of duties and fees
estimated to be payable on such merchandise. As
soon <<NOTE: Deadline.>> as a periodic payment module of the Automated
Commercial Environment is developed, but no later than October 1, 2004,
a participating importer of record, or the importer's filer, may deposit
estimated duties and fees for entries of merchandise no later than the
15th day of the month following the month in which the merchandise is
entered or released, whichever comes first.''.
[[Page 116 STAT. 993]]
DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY
TITLE XXI--TRADE <<NOTE: Bipartisan Trade Promotion Authority Act of
2002.>> PROMOTION AUTHORITY
SEC. 2101. <<NOTE: 19 USC 3801.>> SHORT TITLE AND FINDINGS.
(a) Short Title.--This title may be cited as the ``Bipartisan Trade
Promotion Authority Act of 2002''.
(b) Findings.--The Congress makes the following findings:
(1) The expansion of international trade is vital to the
national security of the United States. Trade is critical to the
economic growth and strength of the United States and to its
leadership in the world. Stable trading relationships promote
security and prosperity. Trade agreements today serve the same
purposes that security pacts played during the Cold War, binding
nations together through a series of mutual rights and
obligations. Leadership by the United States in international
trade fosters open markets, democracy, and peace throughout the
world.
(2) The national security of the United States depends on
its economic security, which in turn is founded upon a vibrant
and growing industrial base. Trade expansion has been the engine
of economic growth. Trade agreements maximize opportunities for
the critical sectors and building blocks of the economy of the
United States, such as information technology,
telecommunications and other leading technologies, basic
industries, capital equipment, medical equipment, services,
agriculture, environmental technology, and intellectual
property. Trade will create new opportunities for the United
States and preserve the unparalleled strength of the United
States in economic, political, and military affairs. The United
States, secured by expanding trade and economic opportunities,
will meet the challenges of the twenty-first century.
(3) Support for continued trade expansion requires that
dispute settlement procedures under international trade
agreements not add to or diminish the rights and obligations
provided in such agreements. Therefore--
(A) the recent pattern of decisions by dispute
settlement panels of the WTO and the Appellate Body to
impose obligations and restrictions on the use of
antidumping, countervailing, and safeguard measures by
WTO members under the Antidumping Agreement, the
Agreement on Subsidies and Countervailing Measures, and
the Agreement on Safeguards has raised concerns; and
(B) the Congress is concerned that dispute
settlement panels of the WTO and the Appellate Body
appropriately apply the standard of review contained in
Article 17.6 of the Antidumping Agreement, to provide
deference to a permissible interpretation by a WTO
member of provisions of that Agreement, and to the
evaluation by a WTO member of the facts where that
evaluation is unbiased and objective and the
establishment of the facts is proper.
[[Page 116 STAT. 994]]
SEC. 2102. <<NOTE: 19 USC 3802.>> TRADE NEGOTIATING OBJECTIVES.
(a) Overall Trade Negotiating Objectives.--The overall trade
negotiating objectives of the United States for agreements subject to
the provisions of section 2103 are--
(1) to obtain more open, equitable, and reciprocal market
access;
(2) to obtain the reduction or elimination of barriers and
distortions that are directly related to trade and that decrease
market opportunities for United States exports or otherwise
distort United States trade;
(3) to further strengthen the system of international
trading disciplines and procedures, including dispute
settlement;
(4) to foster economic growth, raise living standards, and
promote full employment in the United States and to enhance the
global economy;
(5) to ensure that trade and environmental policies are
mutually supportive and to seek to protect and preserve the
environment and enhance the international means of doing so,
while optimizing the use of the world's resources;
(6) to promote respect for worker rights and the rights of
children consistent with core labor standards of the ILO (as
defined in section 2113(6)) and an understanding of the
relationship between trade and worker rights;
(7) to seek provisions in trade agreements under which
parties to those agreements strive to ensure that they do not
weaken or reduce the protections afforded in domestic
environmental and labor laws as an encouragement for trade;
(8) to ensure that trade agreements afford small businesses
equal access to international markets, equitable trade benefits,
and expanded export market opportunities, and provide for the
reduction or elimination of trade barriers that
disproportionately impact small businesses; and
(9) to promote universal ratification and full compliance
with ILO Convention No. 182 Concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of Child
Labor.
(b) Principal Trade Negotiating Objectives.--
(1) Trade barriers and distortions.--The principal
negotiating objectives of the United States regarding trade
barriers and other trade distortions are--
(A) to expand competitive market opportunities for
United States exports and to obtain fairer and more open
conditions of trade by reducing or eliminating tariff
and nontariff barriers and policies and practices of
foreign governments directly related to trade that
decrease market opportunities for United States exports
or otherwise distort United States trade; and
(B) to obtain reciprocal tariff and nontariff
barrier elimination agreements, with particular
attention to those tariff categories covered in section
111(b) of the Uruguay Round Agreements Act (19 U.S.C.
3521(b)).
(2) Trade in services.--The principal negotiating objective
of the United States regarding trade in services is to reduce or
eliminate barriers to international trade in services, including
regulatory and other barriers that deny national treatment and
market access or unreasonably restrict the establishment or
operations of service suppliers.
[[Page 116 STAT. 995]]
(3) Foreign investment.--Recognizing that United States law
on the whole provides a high level of protection for investment,
consistent with or greater than the level required by
international law, the principal negotiating objectives of the
United States regarding foreign investment are to reduce or
eliminate artificial or trade-distorting barriers to foreign
investment, while ensuring that foreign investors in the United
States are not accorded greater substantive rights with respect
to investment protections than United States investors in the
United States, and to secure for investors important rights
comparable to those that would be available under United States
legal principles and practice, by--
(A) reducing or eliminating exceptions to the
principle of national treatment;
(B) freeing the transfer of funds relating to
investments;
(C) reducing or eliminating performance
requirements, forced technology transfers, and other
unreasonable barriers to the establishment and operation
of investments;
(D) seeking to establish standards for expropriation
and compensation for expropriation, consistent with
United States legal principles and practice;
(E) seeking to establish standards for fair and
equitable treatment consistent with United States legal
principles and practice, including the principle of due
process;
(F) providing meaningful procedures for resolving
investment disputes;
(G) seeking to improve mechanisms used to resolve
disputes between an investor and a government through--
(i) mechanisms to eliminate frivolous claims
and to deter the filing of frivolous claims;
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(iii) procedures to enhance opportunities for
public input into the formulation of government
positions; and
(iv) providing for an appellate body or
similar mechanism to provide coherence to the
interpretations of investment provisions in trade
agreements; and
(H) ensuring the fullest measure of transparency in
the dispute settlement mechanism, to the extent
consistent with the need to protect information that is
classified or business confidential, by--
(i) ensuring that all requests for dispute
settlement are promptly made public;
(ii) ensuring that--
(I) all proceedings, submissions,
findings, and decisions are promptly
made public; and
(II) all hearings are open to the
public; and
(iii) establishing a mechanism for acceptance
of amicus curiae submissions from businesses,
unions, and nongovernmental organizations.
(4) Intellectual property.--The principal negotiating
objectives of the United States regarding trade-related
intellectual property are--
(A) to further promote adequate and effective
protection of intellectual property rights, including
through--
[[Page 116 STAT. 996]]
(i)(I) ensuring accelerated and full
implementation of the Agreement on Trade-Related
Aspects of Intellectual Property Rights referred
to in section 101(d)(15) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(15)),
particularly with respect to meeting enforcement
obligations under that agreement; and
(II) ensuring that the provisions of any
multilateral or bilateral trade agreement
governing intellectual property rights that is
entered into by the United States reflect a
standard of protection similar to that found in
United States law;
(ii) providing strong protection for new and
emerging technologies and new methods of
transmitting and distributing products embodying
intellectual property;
(iii) preventing or eliminating discrimination
with respect to matters affecting the
availability, acquisition, scope, maintenance,
use, and enforcement of intellectual property
rights;
(iv) ensuring that standards of protection and
enforcement keep pace with technological
developments, and in particular ensuring that
rightholders have the legal and technological
means to control the use of their works through
the Internet and other global communication media,
and to prevent the unauthorized use of their
works; and
(v) providing strong enforcement of
intellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
mechanisms;
(B) to secure fair, equitable, and nondiscriminatory
market access opportunities for United States persons
that rely upon intellectual property protection; and
(C) to respect the Declaration on the TRIPS
Agreement and Public Health, adopted by the World Trade
Organization at the Fourth Ministerial Conference at
Doha, Qatar on November 14, 2001.
(5) Transparency.--The principal negotiating objective of
the United States with respect to transparency is to obtain
wider and broader application of the principle of transparency
through--
(A) increased and more timely public access to
information regarding trade issues and the activities of
international trade institutions;
(B) increased openness at the WTO and other
international trade fora by increasing public access to
appropriate meetings, proceedings, and submissions,
including with regard to dispute settlement and
investment; and
(C) increased and more timely public access to all
notifications and supporting documentation submitted by
parties to the WTO.
(6) Anti-corruption.--The principal negotiating objectives
of the United States with respect to the use of money or other
things of value to influence acts, decisions, or omissions of
foreign governments or officials or to secure any improper
advantage in a manner affecting trade are--
[[Page 116 STAT. 997]]
(A) to obtain high standards and appropriate
domestic enforcement mechanisms applicable to persons
from all countries participating in the applicable trade
agreement that prohibit such attempts to influence acts,
decisions, or omissions of foreign governments; and
(B) to ensure that such standards do not place
United States persons at a competitive disadvantage in
international trade.
(7) Improvement of the wto and multilateral trade
agreements.--The principal negotiating objectives of the United
States regarding the improvement of the World Trade
Organization, the Uruguay Round Agreements, and other
multilateral and bilateral trade agreements are--
(A) to achieve full implementation and extend the
coverage of the World Trade Organization and such
agreements to products, sectors, and conditions of trade
not adequately covered; and
(B) to expand country participation in and
enhancement of the Information Technology Agreement and
other trade agreements.
(8) Regulatory practices.--The principal negotiating
objectives of the United States regarding the use of government
regulation or other practices by foreign governments to provide
a competitive advantage to their domestic producers, service
providers, or investors and thereby reduce market access for
United States goods, services, and investments are--
(A) to achieve increased transparency and
opportunity for the participation of affected parties in
the development of regulations;
(B) to require that proposed regulations be based on
sound science, cost-benefit analysis, risk assessment,
or other objective evidence;
(C) to establish consultative mechanisms among
parties to trade agreements to promote increased
transparency in developing guidelines, rules,
regulations, and laws for government procurement and
other regulatory regimes; and
(D) to achieve the elimination of government
measures such as price controls and reference pricing
which deny full market access for United States
products.
(9) Electronic commerce.--The principal negotiating
objectives of the United States with respect to electronic
commerce are--
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World Trade
Organization apply to electronic commerce;
(B) to ensure that--
(i) electronically delivered goods and
services receive no less favorable treatment under
trade rules and commitments than like products
delivered in physical form; and
(ii) the classification of such goods and
services ensures the most liberal trade treatment
possible;
(C) to ensure that governments refrain from
implementing trade-related measures that impede
electronic commerce;
(D) where legitimate policy objectives require
domestic regulations that affect electronic commerce, to
obtain
[[Page 116 STAT. 998]]
commitments that any such regulations are the least
restrictive on trade, nondiscriminatory, and
transparent, and promote an open market environment; and
(E) to extend the moratorium of the World Trade
Organization on duties on electronic transmissions.
(10) Reciprocal trade in agriculture.--(A) The principal
negotiating objective of the United States with respect to
agriculture is to obtain competitive opportunities for United
States exports of agricultural commodities in foreign markets
substantially equivalent to the competitive opportunities
afforded foreign exports in United States markets and to achieve
fairer and more open conditions of trade in bulk, specialty
crop, and value-added commodities by--
(i) reducing or eliminating, by a date certain,
tariffs or other charges that decrease market
opportunities for United States exports--
(I) giving priority to those products that are
subject to significantly higher tariffs or subsidy
regimes of major producing countries; and
(II) providing reasonable adjustment periods
for United States import-sensitive products, in
close consultation with the Congress on such
products before initiating tariff reduction
negotiations;
(ii) reducing tariffs to levels that are the same as
or lower than those in the United States;
(iii) reducing or eliminating subsidies that
decrease market opportunities for United States exports
or unfairly distort agriculture markets to the detriment
of the United States;
(iv) allowing the preservation of programs that
support family farms and rural communities but do not
distort trade;
(v) developing disciplines for domestic support
programs, so that production that is in excess of
domestic food security needs is sold at world prices;
(vi) eliminating government policies that create
price-depressing surpluses;
(vii) eliminating state trading enterprises whenever
possible;
(viii) developing, strengthening, and clarifying
rules and effective dispute settlement mechanisms to
eliminate practices that unfairly decrease United States
market access opportunities or distort agricultural
markets to the detriment of the United States,
particularly with respect to import-sensitive products,
including--
(I) unfair or trade-distorting activities of
state trading enterprises and other administrative
mechanisms, with emphasis on requiring price
transparency in the operation of state trading
enterprises and such other mechanisms in order to
end cross subsidization, price discrimination, and
price undercutting;
(II) unjustified trade restrictions or
commercial requirements, such as labeling, that
affect new technologies, including biotechnology;
(III) unjustified sanitary or phytosanitary
restrictions, including those not based on
scientific principles in contravention of the
Uruguay Round Agreements;
[[Page 116 STAT. 999]]
(IV) other unjustified technical barriers to
trade; and
(V) restrictive rules in the administration of
tariff rate quotas;
(ix) eliminating practices that adversely affect
trade in perishable or cyclical products, while
improving import relief mechanisms to recognize the
unique characteristics of perishable and cyclical
agriculture;
(x) ensuring that import relief mechanisms for
perishable and cyclical agriculture are as accessible
and timely to growers in the United States as those
mechanisms that are used by other countries;
(xi) taking into account whether a party to the
negotiations has failed to adhere to the provisions of
already existing trade agreements with the United States
or has circumvented obligations under those agreements;
(xii) taking into account whether a product is
subject to market distortions by reason of a failure of
a major producing country to adhere to the provisions of
already existing trade agreements with the United States
or by the circumvention by that country of its
obligations under those agreements;
(xiii) otherwise ensuring that countries that accede
to the World Trade Organization have made meaningful
market liberalization commitments in agriculture;
(xiv) taking into account the impact that agreements
covering agriculture to which the United States is a
party, including the North American Free Trade
Agreement, have on the United States agricultural
industry;
(xv) maintaining bona fide food assistance programs
and preserving United States market development and
export credit programs; and
(xvi) striving to complete a general multilateral
round in the World Trade Organization by January 1,
2005, and seeking the broadest market access possible in
multilateral, regional, and bilateral negotiations,
recognizing the effect that simultaneous sets of
negotiations may have on United States import-sensitive
commodities (including those subject to tariff-rate
quotas).
(B)(i) Before commencing negotiations with respect to
agriculture, the United States Trade Representative, in
consultation with the Congress, shall seek to develop a position
on the treatment of seasonal and perishable agricultural
products to be employed in the negotiations in order to develop
an international consensus on the treatment of seasonal or
perishable agricultural products in investigations relating to
dumping and safeguards and in any other relevant area.
(ii) During any negotiations on agricultural subsidies, the
United States Trade Representative shall seek to establish the
common base year for calculating the Aggregated Measurement of
Support (as defined in the Agreement on Agriculture) as the end
of each country's Uruguay Round implementation period, as
reported in each country's Uruguay Round market access schedule.
(iii) The negotiating objective provided in subparagraph (A)
applies with respect to agricultural matters to be addressed in
any trade agreement entered into under section 2103(a)
[[Page 116 STAT. 1000]]
or (b), including any trade agreement entered into under section
2103(a) or (b) that provides for accession to a trade agreement
to which the United States is already a party, such as the North
American Free Trade Agreement and the United States-Canada Free
Trade Agreement.
(11) Labor and the environment.--The principal negotiating
objectives of the United States with respect to labor and the
environment are--
(A) to ensure that a party to a trade agreement with
the United States does not fail to effectively enforce
its environmental or labor laws, through a sustained or
recurring course of action or inaction, in a manner
affecting trade between the United States and that party
after entry into force of a trade agreement between
those countries;
(B) to recognize that parties to a trade agreement
retain the right to exercise discretion with respect to
investigatory, prosecutorial, regulatory, and compliance
matters and to make decisions regarding the allocation
of resources to enforcement with respect to other labor
or environmental matters determined to have higher
priorities, and to recognize that a country is
effectively enforcing its laws if a course of action or
inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources, and no
retaliation may be authorized based on the exercise of
these rights or the right to establish domestic labor
standards and levels of environmental protection;
(C) to strengthen the capacity of United States
trading partners to promote respect for core labor
standards (as defined in section 2113(6));
(D) to strengthen the capacity of United States
trading partners to protect the environment through the
promotion of sustainable development;
(E) to reduce or eliminate government practices or
policies that unduly threaten sustainable development;
(F) to seek market access, through the elimination
of tariffs and nontariff barriers, for United States
environmental technologies, goods, and services; and
(G) to ensure that labor, environmental, health, or
safety policies and practices of the parties to trade
agreements with the United States do not arbitrarily or
unjustifiably discriminate against United States exports
or serve as disguised barriers to trade.
(12) Dispute settlement and enforcement.--The principal
negotiating objectives of the United States with respect to
dispute settlement and enforcement of trade agreements are--
(A) to seek provisions in trade agreements providing
for resolution of disputes between governments under
those trade agreements in an effective, timely,
transparent, equitable, and reasoned manner, requiring
determinations based on facts and the principles of the
agreements, with the goal of increasing compliance with
the agreements;
(B) to seek to strengthen the capacity of the Trade
Policy Review Mechanism of the World Trade Organization
to review compliance with commitments;
[[Page 116 STAT. 1001]]
(C) to seek adherence by panels convened under the
Dispute Settlement Understanding and by the Appellate
Body to the standard of review applicable under the
Uruguay Round Agreement involved in the dispute,
including greater deference, where appropriate, to the
fact-finding and technical expertise of national
investigating authorities;
(D) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(E) to seek provisions to encourage the provision of
trade-expanding compensation if a party to a dispute
under the agreement does not come into compliance with
its obligations under the agreement;
(F) to seek provisions to impose a penalty upon a
party to a dispute under the agreement that--
(i) encourages compliance with the obligations
of the agreement;
(ii) is appropriate to the parties, nature,
subject matter, and scope of the violation; and
(iii) has the aim of not adversely affecting
parties or interests not party to the dispute
while maintaining the effectiveness of the
enforcement mechanism; and
(G) to seek provisions that treat United States
principal negotiating objectives equally with respect
to--
(i) the ability to resort to dispute
settlement under the applicable agreement;
(ii) the availability of equivalent dispute
settlement procedures; and
(iii) the availability of equivalent remedies.
(13) WTO extended negotiations.--The principal negotiating
objectives of the United States regarding trade in civil
aircraft are those set forth in section 135(c) of the Uruguay
Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of
origin are the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
(14) Trade remedy laws.--The principal negotiating
objectives of the United States with respect to trade remedy
laws are--
(A) to preserve the ability of the United States to
enforce rigorously its trade laws, including the
antidumping, countervailing duty, and safeguard laws,
and avoid agreements that lessen the effectiveness of
domestic and international disciplines on unfair trade,
especially dumping and subsidies, or that lessen the
effectiveness of domestic and international safeguard
provisions, in order to ensure that United States
workers, agricultural producers, and firms can compete
fully on fair terms and enjoy the benefits of reciprocal
trade concessions; and
(B) to address and remedy market distortions that
lead to dumping and subsidization, including
overcapacity, cartelization, and market-access barriers.
(15) Border taxes.--The principal negotiating objective of
the United States regarding border taxes is to obtain a revision
of the WTO rules with respect to the treatment of border
adjustments for internal taxes to redress the disadvantage to
countries relying primarily on direct taxes for revenue rather
than indirect taxes.
[[Page 116 STAT. 1002]]
(16) Textile Negotiations.--The principal negotiating
objectives of the United States with respect to trade in
textiles and apparel articles are to obtain competitive
opportunities for United States exports of textiles and apparel
in foreign markets substantially equivalent to the competitive
opportunities afforded foreign exports in United States markets
and to achieve fairer and more open conditions of trade in
textiles and apparel.
(17) Worst Forms of Child Labor.--The principal negotiating
objective of the United States with respect to the trade-related
aspects of the worst forms of child labor are to seek
commitments by parties to trade agreements to vigorously enforce
their own laws prohibiting the worst forms of child labor.
(c) Promotion of <<NOTE: President.>> Certain Priorities.--In order
to address and maintain United States competitiveness in the global
economy, the President shall--
(1) seek greater cooperation between the WTO and the ILO;
(2) seek to establish consultative mechanisms among parties
to trade agreements to strengthen the capacity of United States
trading partners to promote respect for core labor standards (as
defined in section 2113(6)) and to promote compliance with ILO
Convention No. 182 Concerning the Prohibition and Immediate
Action for the Elimination of the Worst Forms of Child Labor,
and report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate on
the content and operation of such mechanisms;
(3) seek to establish
consultative <<NOTE: Reports.>> mechanisms among parties to
trade agreements to strengthen the capacity of United States
trading partners to develop and implement standards for the
protection of the environment and human health based on sound
science, and report to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate on the content and operation of such mechanisms;
(4) conduct environmental reviews of future trade and
investment agreements, consistent with Executive Order 13141 of
November 16, 1999, and its relevant guidelines, and report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate on such reviews;
(5) review the impact of future trade agreements on United
States employment, including labor markets, modeled after
Executive Order 13141 to the extent appropriate in establishing
procedures and criteria, report to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate on such review, and make that report
available to the public;
(6) take into account other legitimate United States
domestic objectives including, but not limited to, the
protection of legitimate health or safety, essential security,
and consumer interests and the law and regulations related
thereto;
(7) direct the Secretary of Labor to consult with any
country seeking a trade agreement with the United States
concerning that country's labor laws and provide technical
assistance to that country if needed;
[[Page 116 STAT. 1003]]
(8) in connection with any trade negotiations entered into
under this Act, submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate a meaningful labor rights report of the country, or
countries, with respect to which the President is negotiating,
on a time frame determined in accordance with section
2107(b)(2)(E);
(9) with respect to any trade agreement which the President
seeks to implement under trade authorities procedures, submit to
the Congress a report describing the extent to which the country
or countries that are parties to the agreement have in effect
laws governing exploitative child labor;
(10) continue to promote consideration of multilateral
environmental agreements and consult with parties to such
agreements regarding the consistency of any such agreement that
includes trade measures with existing environmental exceptions
under Article XX of the GATT 1994;
(11) report to the Committee on <<NOTE: Reports.>> Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate, not later than 12 months after the
imposition of a penalty or remedy by the United States permitted
by a trade agreement to which this title applies, on the
effectiveness of the penalty or remedy applied under United
States law in enforcing United States rights under the trade
agreement; and
(12) seek to establish consultative mechanisms among parties
to trade agreements to examine the trade consequences of
significant and unanticipated currency movements and to
scrutinize whether a foreign government engaged in a pattern of
manipulating its currency to promote a competitive advantage in
international trade.
The report under paragraph (11) shall address whether the penalty or
remedy was effective in changing the behavior of the targeted party and
whether the penalty or remedy had any adverse impact on parties or
interests not party to the dispute.
(d) Consultations.--
(1) Consultations with congressional advisers.--In the
course of negotiations conducted under this title, the United
States Trade Representative shall consult closely and on a
timely basis with, and keep fully apprised of the negotiations,
the Congressional Oversight Group convened under section 2107
and all committees of the House of Representatives and the
Senate with jurisdiction over laws that would be affected by a
trade agreement resulting from the negotiations.
(2) Consultation before agreement initialed.--In the course
of negotiations conducted under this title, the United States
Trade Representative shall--
(A) consult closely and on a timely basis (including
immediately before initialing an agreement) with, and
keep fully apprised of the negotiations, the
congressional advisers for trade policy and negotiations
appointed under section 161 of the Trade Act of 1974 (19
U.S.C. 2211), the Committee on Ways and Means of the
House of Representatives, the Committee on Finance of
the Senate, and the Congressional Oversight Group
convened under section 2107; and
[[Page 116 STAT. 1004]]
(B) with regard to any negotiations and agreement
relating to agricultural trade, also consult closely and
on a timely basis (including immediately before
initialing an agreement) with, and keep fully apprised
of the negotiations, the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
(e) Adherence to Obligations Under Uruguay Round Agreements.--In
determining whether to enter into negotiations with a particular
country, the President shall take into account the extent to which that
country has implemented, or has accelerated the implementation of, its
obligations under the Uruguay Round Agreements.
SEC. 2103. <<NOTE: 19 USC 3803.>> TRADE AGREEMENTS AUTHORITY.
(a) Agreements Regarding Tariff Barriers.--
(1) In general.--Whenever the President determines that one
or more existing duties or other import restrictions of any
foreign country or the United States are unduly burdening and
restricting the foreign trade of the United States and that the
purposes, policies, priorities, and objectives of this title
will be promoted thereby, the President--
(A) may enter into trade agreements with foreign
countries before--
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection (c); and
(B) may, subject to paragraphs (2) and (3),
proclaim--
(i) such modification or continuance of any
existing duty,
(ii) such continuance of existing duty-free or
excise treatment, or
(iii) such additional duties,
as the President determines to be required or
appropriate to carry out any such trade agreement.
The President <<NOTE: President. Notification.>> shall notify
the Congress of the President's intention to enter into an
agreement under this subsection.
(2) Limitations.--No proclamation may be made under
paragraph (1) that--
(A) reduces any rate of duty (other than a rate of
duty that does not exceed 5 percent ad valorem on the
date of the enactment of this Act) to a rate of duty
which is less than 50 percent of the rate of such duty
that applies on such date of enactment;
(B) reduces the rate of duty below that applicable
under the Uruguay Round Agreements, on any import
sensitive agricultural product; or
(C) increases any rate of duty above the rate that
applied on the date of the enactment of this Act.
(3) Aggregate reduction; exemption from staging.--
(A) Aggregate reduction.--Except as provided in
subparagraph (B), the aggregate reduction in the rate of
duty on any article which is in effect on any day
pursuant to a trade agreement entered into under
paragraph (1) shall not exceed the aggregate reduction
which would have been in effect on such day if--
[[Page 116 STAT. 1005]]
(i) a reduction of 3 percent ad valorem or a
reduction of one-tenth of the total reduction,
whichever is greater, had taken effect on the
effective date of the first reduction proclaimed
under paragraph (1) to carry out such agreement
with respect to such article; and
(ii) a reduction equal to the amount
applicable under clause (i) had taken effect at 1-
year intervals after the effective date of such
first reduction.
(B) Exemption from staging.--No staging is required
under subparagraph (A) with respect to a duty reduction
that is proclaimed under paragraph (1) for an article of
a kind that is not produced in the United States. The
United States International Trade Commission shall
advise the President of the identity of articles that
may be exempted from staging under this subparagraph.
(4) Rounding.--If the President determines that such action
will simplify the computation of reductions under paragraph (3),
the President may round an annual reduction by an amount equal
to the lesser of--
(A) the difference between the reduction without
regard to this paragraph and the next lower whole
number; or
(B) one-half of 1 percent ad valorem.
(5) Other limitations.--A rate of duty reduction that may
not be proclaimed by reason of paragraph (2) may take effect
only if a provision authorizing such reduction is included
within an implementing bill provided for under section 2105 and
that bill is enacted into law.
(6) Other tariff modifications.--Notwithstanding paragraphs
(1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the
consultation and layover requirements of section 115 of the
Uruguay Round Agreements Act, the President may proclaim the
modification of any duty or staged rate reduction of any duty
set forth in Schedule XX, as defined in section 2(5) of that
Act, if the United States agrees to such modification or staged
rate reduction in a negotiation for the reciprocal elimination
or harmonization of duties under the auspices of the World Trade
Organization.
(7) Authority under uruguay round agreements act not
affected.--Nothing in this subsection shall limit the authority
provided to the President under section 111(b) of the Uruguay
Round Agreements Act (19 U.S.C. 3521(b)).
(b) Agreements Regarding Tariff and Nontariff Barriers.--
(1) In general.--(A) Whenever the President determines
that--
(i) one or more existing duties or any other import
restriction of any foreign country or the United States
or any other barrier to, or other distortion of,
international trade unduly burdens or restricts the
foreign trade of the United States or adversely affects
the United States economy, or
(ii) the imposition of any such barrier or
distortion is likely to result in such a burden,
restriction, or effect,
and that the purposes, policies, priorities, and objectives of
this title will be promoted thereby, the President may enter
into a trade agreement described in subparagraph (B) during the
period described in subparagraph (C).
[[Page 116 STAT. 1006]]
(B) The President may enter into a trade agreement under
subparagraph (A) with foreign countries providing for--
(i) the reduction or elimination of a duty,
restriction, barrier, or other distortion described in
subparagraph (A); or
(ii) the prohibition of, or limitation on the
imposition of, such barrier or other distortion.
(C) The President may enter into a trade agreement under
this paragraph before--
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities procedures
are extended under subsection (c).
(2) Conditions.--A trade agreement may be entered into under
this subsection only if such agreement makes progress in meeting
the applicable objectives described in section 2102(a) and (b)
and the President satisfies the conditions set forth in section
2104.
(3) Bills qualifying for trade authorities procedures.--(A)
The provisions of section 151 of the Trade Act of 1974 (in this
title referred to as ``trade authorities procedures'') apply to
a bill of either House of Congress which contains provisions
described in subparagraph (B) to the same extent as such section
151 applies to implementing bills under that section. A bill to
which this paragraph applies shall hereafter in this title be
referred to as an ``implementing bill''.
(B) The provisions referred to in subparagraph (A) are--
(i) a provision approving a trade agreement entered
into under this subsection and approving the statement
of administrative action, if any, proposed to implement
such trade agreement; and
(ii) if changes in existing laws or new statutory
authority are required to implement such trade agreement
or agreements, provisions, necessary or appropriate to
implement such trade agreement or agreements, either
repealing or amending existing laws or providing new
statutory authority.
(c) Extension Disapproval Process for Congressional Trade
Authorities Procedures.--
(1) In general.--Except as provided in section 2105(b)--
(A) the trade authorities procedures apply to
implementing bills submitted with respect to trade
agreements entered into under subsection (b) before July
1, 2005; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with respect to
trade agreements entered into under subsection (b) after
June 30, 2005, and before July 1, 2007, if (and only
if)--
(i) the President requests such extension
under paragraph (2); and
(ii) neither House of the Congress adopts an
extension disapproval resolution under paragraph
(5) before June 1, 2005.
(2) Report to congress by the president.--
<<NOTE: Deadline.>> If the President is of the opinion that the
trade authorities procedures should be extended to implementing
bills described in paragraph (1)(B), the President shall submit
to the Congress, not later than March 1, 2005, a written report
that contains a request for such extension, together with--
[[Page 116 STAT. 1007]]
(A) a description of all trade agreements that have
been negotiated under subsection (b) and the anticipated
schedule for submitting such agreements to the Congress
for approval;
(B) a description of the progress that has been made
in negotiations to achieve the purposes, policies,
priorities, and objectives of this title, and a
statement that such progress justifies the continuation
of negotiations; and
(C) a statement of the reasons why the extension is
needed to complete the negotiations.
(3) Other reports to congress.--
<<NOTE: President. Deadlines.>>
(A) Report by the advisory committee.--The President
shall promptly inform the Advisory Committee for Trade
Policy and Negotiations established under section 135 of
the Trade Act of 1974 (19 U.S.C. 2155) of the
President's decision to submit a report to the Congress
under paragraph (2). The Advisory Committee shall submit
to the Congress as soon as practicable, but not later
than May 1, 2005, a written report that contains--
(i) its views regarding the progress that has
been made in negotiations to achieve the purposes,
policies, priorities, and objectives of this
title; and
(ii) a statement of its views, and the reasons
therefor, regarding whether the extension
requested under paragraph (2) should be approved
or disapproved.
(B) Report by itc.--The President shall promptly
inform the International Trade Commission of the
President's decision to submit a report to the Congress
under paragraph (2). The International Trade Commission
shall submit to the Congress as soon as practicable, but
not later than May 1, 2005, a written report that
contains a review and analysis of the economic impact on
the United States of all trade agreements implemented
between the date of enactment of this Act and the date
on which the President decides to seek an extension
requested under paragraph (2).
(4) Status of reports.--The reports submitted to the
Congress under paragraphs (2) and (3), or any portion of such
reports, may be classified to the extent the President
determines appropriate.
(5) Extension disapproval resolutions.--(A) For purposes of
paragraph (1), the term ``extension disapproval resolution''
means a resolution of either House of the Congress, the sole
matter after the resolving clause of which is as follows: ``That
the ____ disapproves the request of the President for the
extension, under section 2103(c)(1)(B)(i) of the Bipartisan
Trade Promotion Authority Act of 2002, of the trade authorities
procedures under that Act to any implementing bill submitted
with respect to any trade agreement entered into under section
2103(b) of that Act after June 30, 2005.'', with the blank space
being filled with the name of the resolving House of the
Congress.
(B) Extension disapproval resolutions--
(i) may be introduced in either House of the
Congress by any member of such House; and
[[Page 116 STAT. 1008]]
(ii) shall be referred, in the House of
Representatives, to the Committee on Ways and Means and,
in addition, to the Committee on Rules.
(C) The provisions of section 152(d) and (e) of the Trade
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor
consideration of certain resolutions in the House and Senate)
apply to extension disapproval resolutions.
(D) It is not in order for--
(i) the Senate to consider any extension disapproval
resolution not reported by the Committee on Finance;
(ii) the House of Representatives to consider any
extension disapproval resolution not reported by the
Committee on Ways and Means and, in addition, by the
Committee on Rules; or
(iii) either House of the Congress to consider an
extension disapproval resolution after June 30, 2005.
(d) Commencement of Negotiations.--In order to contribute to the
continued economic expansion of the United States, the President shall
commence negotiations covering tariff and nontariff barriers affecting
any industry, product, or service sector, and expand existing sectoral
agreements to countries that are not parties to those agreements, in
cases where the President determines that such negotiations are feasible
and timely and would benefit the United States. Such sectors include
agriculture, commercial services, intellectual property rights,
industrial and capital goods, government procurement, information
technology products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure products. In
so doing, the President shall take into account all of the principal
negotiating objectives set forth in section 2102(b).
SEC. 2104. <<NOTE: 19 USC 3804.>> CONSULTATIONS AND ASSESSMENT.
(a) Notice <<NOTE: President.>> and Consultation Before
Negotiation.--The President, with respect to any agreement that is
subject to the provisions of section 2103(b), shall--
(1) provide, at least 90 calendar days before initiating
negotiations, written notice to the Congress of the President's
intention to enter into the negotiations and set forth therein
the date the President intends to initiate such negotiations,
the specific United States objectives for the negotiations, and
whether the President intends to seek an agreement, or changes
to an existing agreement;
(2) before and after submission of the notice, consult
regarding the negotiations with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives, such other committees of the House and Senate
as the President deems appropriate, and the Congressional
Oversight group convened under section 2107; and
(3) upon the request of a majority of the members of the
Congressional Oversight Group under section 2107(c), meet with
the Congressional Oversight Group before initiating the
negotiations or at any other time concerning the negotiations.
(b) Negotiations Regarding Agriculture.--
(1) In general.--Before initiating or continuing
negotiations the subject matter of which is directly related to
the subject matter under section 2102(b)(10)(A)(i) with any
country,
[[Page 116 STAT. 1009]]
the President shall assess whether United States tariffs on
agricultural products that were bound under the Uruguay Round
Agreements are lower than the tariffs bound by that country. In
addition, the President shall consider whether the tariff levels
bound and applied throughout the world with respect to imports
from the United States are higher than United States tariffs and
whether the negotiation provides an opportunity to address any
such disparity. The President shall consult with the Committee
on Ways and Means and the Committee on Agriculture of the House
of Representatives and the Committee on Finance and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
concerning the results of the assessment, whether it is
appropriate for the United States to agree to further tariff
reductions based on the conclusions reached in the assessment,
and how all applicable negotiating objectives will be met.
(2) Special consultations on import sensitive products.--(A)
Before initiating negotiations with regard to agriculture, and,
with respect to the Free Trade Area for the Americas and
negotiations with regard to agriculture under the auspices of
the World Trade Organization, as soon as practicable after the
enactment of this Act, the United States Trade Representative
shall--
(i) identify those agricultural products subject to
tariff-rate quotas on the date of enactment of this Act,
and agricultural products subject to tariff reductions
by the United States as a result of the Uruguay Round
Agreements, for which the rate of duty was reduced on
January 1, 1995, to a rate which was not less than 97.5
percent of the rate of duty that applied to such article
on December 31, 1994;
(ii) consult with the Committee on Ways and Means
and the Committee on Agriculture of the House of
Representatives and the Committee on Finance and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate concerning--
(I) whether any further tariff reductions on
the products identified under clause (i) should be
appropriate, taking into account the impact of any
such tariff reduction on the United States
industry producing the product concerned;
(II) whether the products so identified face
unjustified sanitary or phytosanitary
restrictions, including those not based on
scientific principles in contravention of the
Uruguay Round Agreements; and
(III) whether the countries participating in
the negotiations maintain export subsidies or
other programs, policies, or practices that
distort world trade in such products and the
impact of such programs, policies, and practices
on United States producers of the products;
(iii) request that the International Trade
Commission prepare an assessment of the probable
economic effects of any such tariff reduction on the
United States industry producing the product concerned
and on the United States economy as a whole; and
[[Page 116 STAT. 1010]]
(iv) upon complying with clauses (i), (ii), and
(iii), notify the Committee on Ways and Means and the
Committee on Agriculture of the House of Representatives
and the Committee on Finance and the Committee on
Agriculture, Nutrition, and Forestry of the Senate of
those products identified under clause (i) for which the
Trade Representative intends to seek tariff
liberalization in the negotiations and the reasons for
seeking such tariff liberalization.
(B) If, after negotiations described in subparagraph (A) are
commenced--
(i) the United States Trade Representative
identifies any additional agricultural product described
in subparagraph (A)(i) for tariff reductions which were
not the subject of a notification under subparagraph
(A)(iv), or
(ii) any additional agricultural product described
in subparagraph (A)(i) is the subject of a request for
tariff reductions by a party to the negotiations,
the Trade Representative shall, as soon as practicable, notify
the committees referred to in subparagraph (A)(iv) of those
products and the reasons for seeking such tariff reductions.
(3) Negotiations regarding the fishing industry.--Before
initiating, or continuing, negotiations which directly relate to
fish or shellfish trade with any country, the President shall
consult with the Committee on Ways and Means and the Committee
on Resources of the House of Representatives, and the Committee
on Finance and the Committee on Commerce, Science, and
Transportation of the Senate, and shall keep the Committees
apprised of negotiations on an ongoing and timely basis.
(c) Negotiations Regarding Textiles.--Before initiating or
continuing negotiations the subject matter of which is directly related
to textiles and apparel products with any country, the President shall
assess whether United States tariffs on textile and apparel products
that were bound under the Uruguay Round Agreements are lower than the
tariffs bound by that country and whether the negotiation provides an
opportunity to address any such disparity. The President shall consult
with the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate concerning the results of the
assessment, whether it is appropriate for the United States to agree to
further tariff reductions based on the conclusions reached in the
assessment, and how all applicable negotiating objectives will be met.
(d) Consultation With Congress Before Agreements Entered Into.--
(1) Consultation.--Before entering into any trade agreement
under section 2103(b), the President shall consult with--
(A) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate;
(B) each other committee of the House and the
Senate, and each joint committee of the Congress, which
has jurisdiction over legislation involving subject
matters which would be affected by the trade agreement;
and
(C) the Congressional Oversight Group convened under
section 2107.
(2) Scope.--The consultation described in paragraph (1)
shall include consultation with respect to--
[[Page 116 STAT. 1011]]
(A) the nature of the agreement;
(B) how and to what extent the agreement will
achieve the applicable purposes, policies, priorities,
and objectives of this title; and
(C) the implementation of the agreement under
section 2105, including the general effect of the
agreement on existing laws.
(3) Report <<NOTE: President. Deadlines.>> regarding united
states trade remedy laws.--
(A) Changes in certain trade laws.--The President,
at least 180 calendar days before the day on which the
President enters into a trade agreement under section
2103(b), shall report to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate--
(i) the range of proposals advanced in the
negotiations with respect to that agreement, that
may be in the final agreement, and that could
require amendments to title VII of the Tariff Act
of 1930 or to chapter 1 of title II of the Trade
Act of 1974; and
(ii) how these proposals relate to the
objectives described in section 2102(b)(14).
(B) Certain agreements.--With respect to a trade
agreement entered into with Chile or Singapore, the
report referred to in subparagraph (A) shall be
submitted by the President at least 90 calendar days
before the day on which the President enters into that
agreement.
(C) Resolutions.--(i) At any time after the
transmission of the report under subparagraph (A), if a
resolution is introduced with respect to that report in
either House of Congress, the procedures set forth in
clauses (iii) through (vi) shall apply to that
resolution if--
(I) no other resolution with respect to that
report has previously been reported in that House
of Congress by the Committee on Ways and Means or
the Committee on Finance, as the case may be,
pursuant to those procedures; and
(II) no procedural disapproval resolution
under section 2105(b) introduced with respect to a
trade agreement entered into pursuant to the
negotiations to which the report under
subparagraph (A) relates has previously been
reported in that House of Congress by the
Committee on Ways and Means or the Committee on
Finance, as the case may be.
(ii) For purposes of this subparagraph, the term
``resolution'' means only a resolution of either House
of Congress, the matter after the resolving clause of
which is as follows: ``That the ____ finds that the
proposed changes to United States trade remedy laws
contained in the report of the President transmitted to
the Congress on ____ under section 2104(d)(3) of the
Bipartisan Trade Promotion Authority Act of 2002 with
respect to ____, are inconsistent with the negotiating
objectives described in section 2102(b)(14) of that
Act.'', with the first blank space being filled with the
name of the resolving House of Congress, the second
blank space being filled with the appropriate date of
the
[[Page 116 STAT. 1012]]
report, and the third blank space being filled with the
name of the country or countries involved.
(iii) Resolutions in the House of Representatives--
(I) may be introduced by any Member of the
House;
(II) shall be referred to the Committee on
Ways and Means and, in addition, to the Committee
on Rules; and
(III) may not be amended by either Committee.
(iv) Resolutions in the Senate--
(I) may be introduced by any Member of the
Senate;
(II) shall be referred to the Committee on
Finance; and
(III) may not be amended.
(iv) It is not in order for the House of
Representatives to consider any resolution that is not
reported by the Committee on Ways and Means and, in
addition, by the Committee on Rules.
(v) It is not in order for the Senate to consider
any resolution that is not reported by the Committee on
Finance.
(vi) The provisions of section 152(d) and (e) of the
Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating
to floor consideration of certain resolutions in the
House and Senate) shall apply to resolutions.
(e) Advisory Committee Reports.--The <<NOTE: Deadlines.>> report
required under section 135(e)(1) of the Trade Act of 1974 regarding any
trade agreement entered into under section 2103(a) or (b) of this Act
shall be provided to the President, the Congress, and the United States
Trade Representative not later than 30 days after the date on which the
President notifies the Congress under section 2103(a)(1) or
2105(a)(1)(A) of the President's intention to enter into the agreement.
(f) ITC Assessment.--
(1) In general.--The President, <<NOTE: President.>> at
least 90 calendar days before the day on which the President
enters into a trade agreement under section 2103(b), shall
provide the International Trade Commission (referred to in this
subsection as ``the Commission'') with the details of the
agreement as it exists at that time and request the Commission
to prepare and submit an assessment of the agreement as
described in paragraph (2). Between the time the President makes
the request under this paragraph and the time the Commission
submits the assessment, the President shall keep the Commission
current with respect to the details of the agreement.
(2) ITC assessment.--Not <<NOTE: Reports.>> later than 90
calendar days after the President enters into the agreement, the
Commission shall submit to the President and the Congress a
report assessing the likely impact of the agreement on the
United States economy as a whole and on specific industry
sectors, including the impact the agreement will have on the
gross domestic product, exports and imports, aggregate
employment and employment opportunities, the production,
employment, and competitive position of industries likely to be
significantly affected by the agreement, and the interests of
United States consumers.
[[Page 116 STAT. 1013]]
(3) Review of empirical literature.--In preparing the
assessment, the Commission shall review available economic
assessments regarding the agreement, including literature
regarding any substantially equivalent proposed agreement, and
shall provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a discussion
of areas of consensus and divergence between the various
analyses and conclusions, including those of the Commission
regarding the agreement.
SEC. 2105. <<NOTE: 19 USC 3805.>> IMPLEMENTATION OF TRADE AGREEMENTS.
(a) In General.--
(1) Notification and <<NOTE: President.>> submission.--Any
agreement entered into under section 2103(b) shall enter into
force with respect to the United States if (and only if)--
(A) the President, <<NOTE: Federal Register,
publication.>> at least 90 calendar days before the day
on which the President enters into the trade agreement,
notifies the House of Representatives and the Senate of
the President's intention to enter into the agreement,
and promptly thereafter publishes notice of such
intention in the Federal Register;
(B) within 60 days after entering into the
agreement, the President submits to the Congress a
description of those changes to existing laws that the
President considers would be required in order to bring
the United States into compliance with the agreement;
(C) after entering into the agreement, the President
submits to the Congress, on a day on which both Houses
of Congress are in session, a copy of the final legal
text of the agreement, together with--
(i) a draft of an implementing bill described
in section 2103(b)(3);
(ii) a statement of any administrative action
proposed to implement the trade agreement; and
(iii) the supporting information described in
paragraph (2); and
(D) the implementing bill is enacted into law.
(2) Supporting information.--The supporting information
required under paragraph (1)(C)(iii) consists of--
(A) an explanation as to how the implementing bill
and proposed administrative action will change or affect
existing law; and
(B) a statement--
(i) asserting that the agreement makes
progress in achieving the applicable purposes,
policies, priorities, and objectives of this
title; and
(ii) setting forth the reasons of the
President regarding--
(I) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in clause (i);
(II) whether and how the agreement
changes provisions of an agreement
previously negotiated;
(III) how the agreement serves the
interests of United States commerce;
[[Page 116 STAT. 1014]]
(IV) how the implementing bill meets
the standards set forth in section
2103(b)(3); and
(V) how and to what extent the
agreement makes progress in achieving
the applicable purposes, policies, and
objectives referred to in section
2102(c) regarding the promotion of
certain priorities.
(3) Reciprocal benefits.--In order to ensure that a foreign
country that is not a party to a trade agreement entered into
under section 2103(b) does not receive benefits under the
agreement unless the country is also subject to the obligations
under the agreement, the implementing bill submitted with
respect to the agreement shall provide that the benefits and
obligations under the agreement apply only to the parties to the
agreement, if such application is consistent with the terms of
the agreement. The implementing bill may also provide that the
benefits and obligations under the agreement do not apply
uniformly to all parties to the agreement, if such application
is consistent with the terms of the agreement.
(4) Disclosure of commitments.--Any agreement or other
understanding with a foreign government or governments (whether
oral or in writing) that--
(A) relates to a trade agreement with respect to
which the Congress enacts an implementing bill under
trade authorities procedures, and
(B) is not disclosed to the Congress before an
implementing bill with respect to that agreement is
introduced in either House of Congress,
shall not be considered to be part of the agreement approved by
the Congress and shall have no force and effect under United
States law or in any dispute settlement body.
(b) Limitations on Trade Authorities Procedures.--
(1) For lack of notice or consultations.--
(A) In general.--The trade authorities procedures
shall not apply to any implementing bill submitted with
respect to a trade agreement or trade agreements entered
into under section 2103(b) if during the 60-day period
beginning on the date that one House of Congress agrees
to a procedural disapproval resolution for lack of
notice or consultations with respect to such trade
agreement or agreements, the other House separately
agrees to a procedural disapproval resolution with
respect to such trade agreement or agreements.
(B) Procedural disapproval resolution.--(i) For
purposes of this paragraph, the term ``procedural
disapproval resolution'' means a resolution of either
House of Congress, the sole matter after the resolving
clause of which is as follows: ``That the President has
failed or refused to notify or consult in accordance
with the Bipartisan Trade Promotion Authority Act of
2002 on negotiations with respect to ____________ and,
therefore, the trade authorities procedures under that
Act shall not apply to any implementing bill submitted
with respect to such trade agreement or agreements.'',
with the blank space being filled with a description of
the trade agreement or agreements with respect to which
the President is considered to have failed or refused to
notify or consult.
[[Page 116 STAT. 1015]]
(ii) For purposes of clause (i), the President has
``failed or refused to notify or consult in accordance
with the Bipartisan Trade Promotion Authority Act of
2002'' on negotiations with respect to a trade agreement
or trade agreements if--
(I) the President has failed or refused to
consult (as the case may be) in accordance with
section 2104 or 2105 with respect to the
negotiations, agreement, or agreements;
(II) guidelines under section 2107(b) have not
been developed or met with respect to the
negotiations, agreement, or agreements;
(III) the President has not met with the
Congressional Oversight Group pursuant to a
request made under section 2107(c) with respect to
the negotiations, agreement, or agreements; or
(IV) the agreement or agreements fail to make
progress in achieving the purposes, policies,
priorities, and objectives of this title.
(2) Procedures for considering resolutions.--(A) Procedural
disapproval resolutions--
(i) in the House of Representatives--
(I) may be introduced by any Member of the
House;
(II) shall be referred to the Committee on
Ways and Means and, in addition, to the Committee
on Rules; and
(III) may not be amended by either Committee;
and
(ii) in the Senate--
(I) may be introduced by any Member of the
Senate;
(II) shall be referred to the Committee on
Finance; and
(III) may not be amended.
(B) The provisions of section 152(d) and (e) of the Trade
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor
consideration of certain resolutions in the House and Senate)
apply to a procedural disapproval resolution introduced with
respect to a trade agreement if no other procedural disapproval
resolution with respect to that trade agreement has previously
been reported in that House of Congress by the Committee on Ways
and Means or the Committee on Finance, as the case may be, and
if no resolution described in section 2104(d)(3)(C)(ii) with
respect to that trade agreement has been reported in that House
of Congress by the Committee on Ways and Means or the Committee
on Finance, as the case may be, pursuant to the procedures set
forth in clauses (iii) through (vi) of such section
2104(d)(3)(C).
(C) It is not in order for the House of Representatives to
consider any procedural disapproval resolution not reported by
the Committee on Ways and Means and, in addition, by the
Committee on Rules.
(D) It is not in order for the Senate to consider any
procedural disapproval resolution not reported by the Committee
on Finance.
[[Page 116 STAT. 1016]]
(3) For failure to meet other requirements.--
Not <<NOTE: Deadline. Reports.>> later than December 31, 2002,
the Secretary of Commerce, in consultation with the Secretary of
State, the Secretary of the Treasury, the Attorney General, and
the United States Trade Representative, shall transmit to the
Congress a report setting forth the strategy of the executive
branch to address concerns of the Congress regarding whether
dispute settlement panels and the Appellate Body of the WTO have
added to obligations, or diminished rights, of the United
States, as described in section 2101(b)(3). Trade authorities
procedures shall not apply to any implementing bill with respect
to an agreement negotiated under the auspices of the WTO unless
the Secretary of Commerce has issued such report in a timely
manner.
(c) Rules of House of Representatives and Senate.--Subsection (b) of
this section, section 2103(c), aand section 2104(d)(3)(C) are enacted by
the Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such are
deemed a part of the rules of each House, respectively, and such
procedures supersede other rules only to the extent that they
are inconsistent with such other rules; and
(2) with the full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedures of that House) at any time, in the same manner, and
to the same extent as any other rule of that House.
SEC. 2106. <<NOTE: 19 USC 3806.>> TREATMENT OF CERTAIN TRADE AGREEMENTS
FOR WHICH NEGOTIATIONS HAVE ALREADY BEGUN.
(a) Certain Agreements.--Notwithstanding the prenegotiation
notification and consultation requirement described in section 2104(a),
if an agreement to which section 2103(b) applies--
(1) is entered into under the auspices of the World Trade
Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of the
enactment of this Act, subsection (b) shall apply.
(b) Treatment of Agreements.--In the case of any agreement to which
subsection (a) applies--
(1) the applicability of the trade authorities procedures to
implementing bills shall be determined without regard to the
requirements of section 2104(a) (relating only to 90 days notice
prior to initiating negotiations), and any procedural
disapproval resolution under section 2105(b)(1)(B) shall not be
in order on the basis of a failure or refusal to comply with the
provisions of section 2104(a); and
(2) the President shall, <<NOTE: President.>> as soon as
feasible after the enactment of this Act--
(A) notify the Congress of the negotiations
described in subsection (a), the specific United States
objectives in the negotiations, and whether the
President is seeking a new agreement or changes to an
existing agreement; and
(B) before and after submission of the notice,
consult regarding the negotiations with the committees
referred
[[Page 116 STAT. 1017]]
to in section 2104(a)(2) and the Congressional Oversight
Group convened under section 2107.
SEC. 2107. <<NOTE: 19 USC 3807.>> CONGRESSIONAL OVERSIGHT GROUP.
(a) Members and Functions.--
(1) In general.--By <<NOTE: Deadline.>> not later than 60
days after the date of the enactment of this Act, and not later
than 30 days after the convening of each Congress, the chairman
of the Committee on Ways and Means of the House of
Representatives and the chairman of the Committee on Finance of
the Senate shall convene the Congressional Oversight Group.
(2) Membership from the house.--In each Congress, the
Congressional Oversight Group shall be comprised of the
following Members of the House of Representatives:
(A) The chairman and ranking member of the Committee
on Ways and Means, and 3 additional members of such
Committee (not more than 2 of whom are members of the
same political party).
(B) The chairman and ranking member, or their
designees, of the committees of the House of
Representatives which would have, under the Rules of the
House of Representatives, jurisdiction over provisions
of law affected by a trade agreement negotiations for
which are conducted at any time during that Congress and
to which this title would apply.
(3) Membership from the senate.--In each Congress, the
Congressional Oversight Group shall also be comprised of the
following members of the Senate:
(A) The chairman and ranking member of the Committee
on Finance and 3 additional members of such Committee
(not more than 2 of whom are members of the same
political party).
(B) The chairman and ranking member, or their
designees, of the committees of the Senate which would
have, under the Rules of the Senate, jurisdiction over
provisions of law affected by a trade agreement
negotiations for which are conducted at any time during
that Congress and to which this title would apply.
(4) Accreditation.--Each member of the Congressional
Oversight Group described in paragraph (2)(A) and (3)(A) shall
be accredited by the United States Trade Representative on
behalf of the President as an official adviser to the United
States delegation in negotiations for any trade agreement to
which this title applies. Each member of the Congressional
Oversight Group described in paragraph (2)(B) and (3)(B) shall
be accredited by the United States Trade Representative on
behalf of the President as an official adviser to the United
States delegation in the negotiations by reason of which the
member is in the Congressional Oversight Group. The
Congressional Oversight Group shall consult with and provide
advice to the Trade Representative regarding the formulation of
specific objectives, negotiating strategies and positions, the
development of the applicable trade agreement, and compliance
and enforcement of the negotiated commitments under the trade
agreement.
(5) Chair.--The Congressional Oversight Group shall be
chaired by the Chairman of the Committee on Ways and Means
[[Page 116 STAT. 1018]]
of the House of Representatives and the Chairman of the
Committee on Finance of the Senate.
(b) Guidelines.--
(1) Purpose and revision.--The United States Trade
Representative, in consultation with the chairmen and ranking
minority members of the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate--
(A) shall, within 120 days after the date of the
enactment of this Act, develop written guidelines to
facilitate the useful and timely exchange of information
between the Trade Representative and the Congressional
Oversight Group convened under this section; and
(B) may make such revisions to the guidelines as may
be necessary from time to time.
(2) Content.--The guidelines developed under paragraph (1)
shall provide for, among other things--
(A) regular, detailed briefings of the Congressional
Oversight Group regarding negotiating objectives,
including the promotion of certain priorities referred
to in section 2102(c), and positions and the status of
the applicable negotiations, beginning as soon as
practicable after the Congressional Oversight Group is
convened, with more frequent briefings as trade
negotiations enter the final stage;
(B) access by members of the Congressional Oversight
Group, and staff with proper security clearances, to
pertinent documents relating to the negotiations,
including classified materials;
(C) the closest practicable coordination between the
Trade Representative and the Congressional Oversight
Group at all critical periods during the negotiations,
including at negotiation sites;
(D) after the applicable trade agreement is
concluded, consultation regarding ongoing compliance and
enforcement of negotiated commitments under the trade
agreement; and
(E) the time frame for submitting the report
required under section 2102(c)(8).
(c) Request for Meeting.--Upon the request of a majority of the
Congressional Oversight Group, the President shall meet with the
Congressional Oversight Group before initiating negotiations with
respect to a trade agreement, or at any other time concerning the
negotiations.
SEC. 2108. <<NOTE: 19 USC 3808.>> ADDITIONAL IMPLEMENTATION AND
ENFORCEMENT REQUIREMENTS.
(a) In General.--At <<NOTE: President.>> the time the President
submits to the Congress the final text of an agreement pursuant to
section 2105(a)(1)(C), the President shall also submit a plan for
implementing and enforcing the agreement. The implementation and
enforcement plan shall include the following:
(1) Border personnel requirements.--A description of
additional personnel required at border entry points, including
a list of additional customs and agricultural inspectors.
(2) Agency staffing requirements.--A description of
additional personnel required by Federal agencies responsible
for monitoring and implementing the trade agreement,
[[Page 116 STAT. 1019]]
including personnel required by the Office of the United States
Trade Representative, the Department of Commerce, the Department
of Agriculture (including additional personnel required to
implement sanitary and phytosanitary measures in order to obtain
market access for United States exports), the Department of the
Treasury, and such other agencies as may be necessary.
(3) Customs infrastructure requirements.--A description of
the additional equipment and facilities needed by the United
States Customs Service.
(4) Impact on state and local governments.--A description of
the impact the trade agreement will have on State and local
governments as a result of increases in trade.
(5) Cost analysis.--An analysis of the costs associated with
each of the items listed in paragraphs (1) through (4).
(b) Budget Submission.--The <<NOTE: President.>> President shall
include a request for the resources necessary to support the plan
described in subsection (a) in the first budget that the President
submits to the Congress after the submission of the plan.
SEC. 2109. <<NOTE: 19 USC 3809.>> COMMITTEE STAFF.
The grant of trade promotion authority under this title is likely to
increase the activities of the primary committees of jurisdiction in the
area of international trade. In addition, the creation of the
Congressional Oversight Group under section 2107 will increase the
participation of a broader number of Members of Congress in the
formulation of United States trade policy and oversight of the
international trade agenda for the United States. The primary committees
of jurisdiction should have adequate staff to accommodate these
increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 et
seq.) is amended as follows:
(1) Implementing bill.--
(A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is
amended by striking ``section 1103(a)(1) of the Omnibus
Trade and Competitiveness Act of 1988, or section 282 of
the Uruguay Round Agreements Act'' and inserting
``section 282 of the Uruguay Round Agreements Act, or
section 2105(a)(1) of the Bipartisan Trade Promotion
Authority Act of 2002''.
(B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is
amended by striking ``or section 282 of the Uruguay
Round Agreements Act'' and inserting ``, section 282 of
the Uruguay Round Agreements Act, or section 2105(a)(1)
of the Bipartisan Trade Promotion Authority Act of
2002''.
(2) Advice from international trade commission.--Section 131
(19 U.S.C. 2151) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``section
123 of this Act or section 1102 (a) or (c) of the
Omnibus Trade and Competitiveness Act of 1988,''
and inserting ``section 123 of this Act or section
2103(a) or (b) of the Bipartisan Trade Promotion
Authority Act of 2002,''; and
(ii) in paragraph (2), by striking ``section
1102 (b) or (c) of the Omnibus Trade and
Competitiveness
[[Page 116 STAT. 1020]]
Act of 1988'' and inserting ``section 2103(b) of
the Bipartisan Trade Promotion Authority Act of
2002'';
(B) in subsection (b), by striking ``section
1102(a)(3)(A)'' and inserting ``section 2103(a)(3)(A) of
the Bipartisan Trade Promotion Authority Act of 2002'';
and
(C) in subsection (c), by striking ``section 1102 of
the Omnibus Trade and Competitiveness Act of 1988,'' and
inserting ``section 2103 of the Bipartisan Trade
Promotion Authority Act of 2002,''.
(3) Hearings and advice.--Sections 132, 133(a), and 134(a)
(19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by
striking ``section 1102 of the Omnibus Trade and Competitiveness
Act of 1988,'' each place it appears and inserting ``section
2103 of the Bipartisan Trade Promotion Authority Act of 2002,''.
(4) Prerequisites for offers.--Section 134(b) (19 U.S.C.
2154(b)) is amended by striking ``section 1102 of the Omnibus
Trade and Competitiveness Act of 1988'' and inserting ``section
2103 of the Bipartisan Trade Promotion Authority Act of 2002''.
(5) Advice from private and public sectors.--Section 135 (19
U.S.C. 2155) is amended--
(A) in subsection (a)(1)(A), by striking ``section
1102 of the Omnibus Trade and Competitiveness Act of
1988'' and inserting ``section 2103 of the Bipartisan
Trade Promotion Authority Act of 2002'';
(B) in subsection (e)(1)--
(i) by striking ``section 1102 of the Omnibus
Trade and Competitiveness Act of 1988'' each place
it appears and inserting ``section 2103 of the
Bipartisan Trade Promotion Authority Act of
2002''; and
(ii) by striking ``section 1103(a)(1)(A) of
such Act of 1988'' and inserting ``section
2105(a)(1)(A) of the Bipartisan Trade Promotion
Authority Act of 2002''; and
(C) in subsection (e)(2), by striking ``section 1101
of the Omnibus Trade and Competitiveness Act of 1988''
and inserting ``section 2102 of the Bipartisan Trade
Promotion Authority Act of 2002''.
(6) Transmission of agreements to congress.--Section 162(a)
(19 U.S.C. 2212(a)) is amended by striking ``or under section
1102 of the Omnibus Trade and Competitiveness Act of 1988'' and
inserting ``or under section 2103 of the Bipartisan Trade
Promotion Authority Act of 2002''.
(b) Application of Certain <<NOTE: 19 USC 3810.>> Provisions.--For
purposes of applying sections 125, 126, and 127 of the Trade Act of 1974
(19 U.S.C. 2135, 2136(a), and 2137)--
(1) any trade agreement entered into under section 2103
shall be treated as an agreement entered into under section 101
or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111
or 2112); and
(2) any proclamation or Executive order issued pursuant to a
trade agreement entered into under section 2103 shall be treated
as a proclamation or Executive order issued pursuant to a trade
agreement entered into under section 102 of the Trade Act of
1974.
[[Page 116 STAT. 1021]]
SEC. 2111. <<NOTE: 19 USC 3811.>> REPORT ON IMPACT OF TRADE PROMOTION
AUTHORITY.
(a) In General.--Not <<NOTE: Deadline.>> later than 1 year after the
date of enactment of this Act, the International Trade Commission shall
report to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives regarding the economic
impact on the United States of the trade agreements described in
subsection (b).
(b) Agreements.--The trade agreements described in this subsection
are the following:
(1) The United States-Israel Free Trade Agreement.
(2) The United States-Canada Free Trade Agreement.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Negotiations.
SEC. 2112. <<NOTE: 19 USC 3812.>> INTERESTS OF SMALL BUSINESS.
The Assistant United States Trade Representative for Industry and
Telecommunications shall be responsible for ensuring that the interests
of small business are considered in all trade negotiations in accordance
with the objective described in section 2102(a)(8). It is the sense of
the Congress that the small business functions should be reflected in
the title of the Assistant United States Trade Representative assigned
the responsibility for small business.
SEC. 2113. <<NOTE: 19 USC 3813.>> DEFINITIONS.
In this title:
(1) Agreement on agriculture.--The term ``Agreement on
Agriculture'' means the agreement referred to in section
101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(2)).
(2) Agreement on safeguards.--The term ``Agreement on
Safeguards means the agreement referred to in section 101(d)(12)
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
(2) Agreement on subsidies and countervailing measures.--The
term ``Agreement on Subsidies and Countervailing Measures''
means the agreement referred to in section 101(d)(13) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(13)).
(4) Antidumping agreement.--The term ``Antidumping
Agreement`` means the Agreement on Implementation of Article VI
of the General Agreement on Tariffs and Trade 1994 referred to
in section 101(d)(7) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(7)).
(5) Appellate body.--The term ``Appellate Body'' means the
Appellate Body established under Article 17.1 of the Dispute
Settlement Understanding.
(6) Core labor standards.--The term ``core labor standards''
means--
(A) the right of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on the use of any form of forced
or compulsory labor;
(D) a minimum age for the employment of children;
and
[[Page 116 STAT. 1022]]
(E) acceptable conditions of work with respect to
minimum wages, hours of work, and occupational safety
and health.
(7) Dispute settlement understanding.--The term ``Dispute
Settlement Understanding'' means the Understanding on Rules and
Procedures Governing the Settlement of Disputes referred to in
section 101(d)(16) of the Uruguay Round Agreements Act.
(8) GATT 1994.--The term ``GATT 1994'' has the meaning given
that term in section 2 of the Uruguay Round Agreements Act (19
U.S.C. 3501).
(9) ILO.--The term ``ILO'' means the International Labor
Organization.
(10) Import sensitive agricultural product.--The term
``import sensitive agricultural product'' means an agricultural
product--
(A) with respect to which, as a result of the
Uruguay Round Agreements the rate of duty was the
subject of tariff reductions by the United States and,
pursuant to such Agreements, was reduced on January 1,
1995, to a rate that was not less than 97.5 percent of
the rate of duty that applied to such article on
December 31, 1994; or
(B) which was subject to a tariff-rate quota on the
date of the enactment of this Act.
(11) United states person.--The term ``United States
person'' means--
(A) a United States citizen;
(B) a partnership, corporation, or other legal
entity organized under the laws of the United States;
and
(C) a partnership, corporation, or other legal
entity that is organized under the laws of a foreign
country and is controlled by entities described in
subparagraph (B) or United States citizens, or both.
(12) Uruguay round agreements.--The term ``Uruguay Round
Agreements'' has the meaning given that term in section 2(7) of
the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
(13) World trade organization; wto.--The terms ``World Trade
Organization'' and ``WTO'' mean the organization established
pursuant to the WTO Agreement.
(14) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered into
on April 15, 1994.
(15) WTO member.--The term ``WTO member'' has the meaning
given that term in section 2(10) of the Uruguay Round Agreements
Act (19 U.S.C. 3501(10)).
[[Page 116 STAT. 1023]]
DIVISION C--ANDEAN TRADE PREFERENCE ACT
TITLE XXXI--ANDEAN <<NOTE: Andean Trade Promotion and Drug Eradication
Act.>> TRADE PREFERENCE
SEC. 3101. <<NOTE: 19 USC 3201 note.>> SHORT TITLE.
This title may be cited as the ``Andean Trade Promotion and Drug
Eradication Act''.
SEC. 3102. <<NOTE: 19 USC 3201 note.>> FINDINGS.
Congress makes the following findings:
(1) Since the Andean Trade Preference Act was enacted in
1991, it has had a positive impact on United States trade with
Bolivia, Colombia, Ecuador, and Peru. Two-way trade has doubled,
with the United States serving as the leading source of imports
and leading export market for each of the Andean beneficiary
countries. This has resulted in increased jobs and expanded
export opportunities in both the United States and the Andean
region.
(2) The Andean Trade Preference Act has been a key element
in the United States counternarcotics strategy in the Andean
region, promoting export diversification and broad-based
economic development that provides sustainable economic
alternatives to drug-crop production, strengthening the
legitimate economies of Andean countries and creating viable
alternatives to illicit trade in coca.
(3) Notwithstanding the success of the Andean Trade
Preference Act, the Andean region remains threatened by
political and economic instability and fragility, vulnerable to
the consequences of the drug war and fierce global competition
for its legitimate trade.
(4) The continuing instability in the Andean region poses a
threat to the security interests of the United States and the
world. This problem has been partially addressed through foreign
aid, such as Plan Colombia, enacted by Congress in 2000.
However, foreign aid alone is not sufficient. Enhancement of
legitimate trade with the United States provides an alternative
means for reviving and stabilizing the economies in the Andean
region.
(5) The Andean Trade Preference Act constitutes a tangible
commitment by the United States to the promotion of prosperity,
stability, and democracy in the beneficiary countries.
(6) Renewal and enhancement of the Andean Trade Preference
Act will bolster the confidence of domestic private enterprise
and foreign investors in the economic prospects of the region,
ensuring that legitimate private enterprise can be the engine of
economic development and political stability in the region.
(7) Each of the Andean beneficiary countries is committed to
conclude negotiation of a Free Trade Area of the Americas by the
year 2005, as a means of enhancing the economic security of the
region.
(8) Temporarily enhancing trade benefits for Andean
beneficiary countries will promote the growth of free enterprise
[[Page 116 STAT. 1024]]
and economic opportunity in these countries and serve the
security interests of the United States, the region, and the
world.
SEC. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.
(a) Eligibility of Certain Articles.--Section 204 of the Andean
Trade Preference Act (19 U.S.C. 3203) is amended--
(1) by striking subsection (c) and redesignating subsections
(d) through (g) as subsections (c) through (f), respectively;
and
(2) by amending subsection (b) to read as follows:
``(b) Exceptions and Special Rules.--
``(1) Certain articles that are not import-sensitive.--The
President may proclaim duty-free treatment under this title for
any article described in subparagraph (A), (B), (C), or (D) that
is the growth, product, or manufacture of an ATPDEA beneficiary
country, that is imported directly into the customs territory of
the United States from an ATPDEA beneficiary country, and that
meets the requirements of this section, if the President
determines that such article is not import-sensitive in the
context of imports from ATPDEA beneficiary countries:
``(A) Footwear not designated at the time of the
effective date of this title as eligible for purposes of
the generalized system of preferences under title V of
the Trade Act of 1974.
``(B) Petroleum, or any product derived from
petroleum, provided for in headings 2709 and 2710 of the
HTS.
``(C) Watches and watch parts (including cases,
bracelets and straps), of whatever type including, but
not limited to, mechanical, quartz digital or quartz
analog, if such watches or watch parts contain any
material which is the product of any country with
respect to which HTS column 2 rates of duty apply.
``(D) Handbags, luggage, flat goods, work gloves,
and leather wearing apparel that were not designated on
August 5, 1983, as eligible articles for purposes of the
generalized system of preferences under title V of the
Trade Act of 1974.
``(2) Exclusions.--Subject to paragraph (3), duty-free
treatment under this title may not be extended to--
``(A) textiles and apparel articles which were not
eligible articles for purposes of this title on January
1, 1994, as this title was in effect on that date;
``(B) rum and tafia classified in subheading 2208.40
of the HTS;
``(C) sugars, syrups, and sugar-containing products
subject to over-quota duty rates under applicable
tariff-rate quotas; or
``(D) tuna prepared or preserved in any manner in
airtight containers, except as provided in paragraph
(4).
``(3) Apparel articles and certain textile articles.--
``(A) In general.--Apparel articles that are
imported directly into the customs territory of the
United States from an ATPDEA beneficiary country shall
enter the United States free of duty and free of any
quantitative restrictions, limitations, or consultation
levels, but only if such articles are described in
subparagraph (B).
[[Page 116 STAT. 1025]]
``(B) Covered articles.--The apparel articles
referred to in subparagraph (A) are the following:
``(i) Apparel articles assembled from products
of the united states or atpdea beneficiary
countries or products not available in commercial
quantities.--Apparel articles sewn or otherwise
assembled in 1 or more ATPDEA beneficiary
countries, or the United States, or both,
exclusively from any one or any combination of the
following:
``(I) Fabrics or fabric components
wholly formed, or components knit-to-
shape, in the United States, from yarns
wholly formed in the United States or 1
or more ATPDEA beneficiary countries
(including fabrics not formed from
yarns, if such fabrics are classifiable
under heading 5602 or 5603 of the HTS
and are formed in the United States).
Apparel articles shall qualify under
this subclause only if all dyeing,
printing, and finishing of the fabrics
from which the articles are assembled,
if the fabrics are knit fabrics, is
carried out in the United States.
Apparel articles shall qualify under
this subclause only if all dyeing,
printing, and finishing of the fabrics
from which the articles are assembled,
if the fabrics are woven fabrics, is
carried out in the United States.
``(II) Fabrics or fabric components
formed or components knit-to-shape, in 1
or more ATPDEA beneficiary countries,
from yarns wholly formed in 1 or more
ATPDEA beneficiary countries, if such
fabrics (including fabrics not formed
from yarns, if such fabrics are
classifiable under heading 5602 or 5603
of the HTS and are formed in 1 or more
ATPDEA beneficiary countries) or
components are in chief value of llama,
alpaca, or vicuna.
``(III) Fabrics or yarns, to the
extent that apparel articles of such
fabrics or yarns would be eligible for
preferential treatment, without regard
to the source of the fabrics or yarns,
under Annex 401 of the NAFTA.
``(ii) Additional fabrics.--At the request of
any interested party, the President is authorized
to proclaim additional fabrics and yarns as
eligible for preferential treatment under clause
(i)(III) if--
``(I) the President determines that
such fabrics or yarns cannot be supplied
by the domestic industry in commercial
quantities in a timely manner;
``(II) the President has obtained
advice regarding the proposed action
from the appropriate advisory committee
established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) and
the United States International Trade
Commission;
``(III) within 60 days after the
request, the President has submitted a
report to the Committee on Ways and
Means of the House of Representatives
and the Committee on Finance of the
Senate
[[Page 116 STAT. 1026]]
that sets forth the action proposed to
be proclaimed and the reasons for such
action, and the advice obtained under
subclause (II);
``(IV) a period of 60 calendar days,
beginning with the first day on which
the President has met the requirements
of subclause (III), has expired; and
``(V) the President has consulted
with such committees regarding the
proposed action during the period
referred to in subclause (III).
``(iii) Apparel articles assembled in 1 or
more atpdea beneficiary countries from regional
fabrics or regional components.--(I) Subject to
the limitation set forth in subclause (II),
apparel articles sewn or otherwise assembled in 1
or more ATPDEA beneficiary countries from fabrics
or from fabric components formed or from
components knit-to-shape, in 1 or more ATPDEA
beneficiary countries, from yarns wholly formed in
the United States or 1 or more ATPDEA beneficiary
countries (including fabrics not formed from
yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the HTS and are formed in
1 or more ATPDEA beneficiary countries), whether
or not the apparel articles are also made from any
of the fabrics, fabric components formed, or
components knit-to-shape described in clause (i)
(unless the apparel articles are made exclusively
from any of the fabrics, fabric components formed,
or components knit-to-shape described in clause
(i)).
``(II) The preferential treatment referred to
in subclause (I) shall be extended in the 1-year
period beginning October 1, 2002, and in each of
the 4 succeeding 1-year periods, to imports of
apparel articles in an amount not to exceed the
applicable percentage of the aggregate square
meter equivalents of all apparel articles imported
into the United States in the preceding 12-month
period for which data are available.
``(III) For purposes of subclause (II), the
term `applicable percentage' means 2 percent for
the 1-year period beginning October 1, 2002,
increased in each of the 4 succeeding 1-year
periods by equal increments, so that for the
period beginning October 1, 2006, the applicable
percentage does not exceed 5 percent.
``(iv) Handloomed, handmade, and folklore
articles.--A handloomed, handmade, or folklore
article of an ATPDEA beneficiary country
identified under subparagraph (C) that is
certified as such by the competent authority of
such beneficiary country.
``(v) Certain other apparel articles.--
``(I) General rule.--Any apparel
article classifiable under subheading
6212.10 of the HTS, except for articles
entered under clause (i), (ii), (iii),
or (iv), if the article is both cut and
sewn or otherwise assembled in the
United States, or one or more ATPDEA
beneficiary countries, or both.
[[Page 116 STAT. 1027]]
``(II) Limitation.--During the 1-
year period beginning on October 1,
2003, and during each of the 3
succeeding 1-year periods, apparel
articles described in subclause (I) of a
producer or an entity controlling
production shall be eligible for
preferential treatment under this
paragraph only if the aggregate cost of
fabrics (exclusive of all findings and
trimmings) formed in the United States
that are used in the production of all
such articles of that producer or entity
that are entered and eligible under this
clause during the preceding 1-year
period is at least 75 percent of the
aggregate declared customs value of the
fabric (exclusive of all findings and
trimmings) contained in all such
articles of that producer or entity that
are entered and eligible under this
clause during the preceding 1-year
period.
``(III) Development of procedure to
ensure compliance.--The United States
Customs Service shall develop and
implement methods and procedures to
ensure ongoing compliance with the
requirement set forth in subclause (II).
If the Customs Service finds that a
producer or an entity controlling
production has not satisfied such
requirement in a 1-year period, then
apparel articles described in subclause
(I) of that producer or entity shall be
ineligible for preferential treatment
under this paragraph during any
succeeding 1-year period until the
aggregate cost of fabrics (exclusive of
all findings and trimmings) formed in
the United States that are used in the
production of such articles of that
producer or entity entered during the
preceding 1-year period is at least 85
percent of the aggregate declared
customs value of the fabric (exclusive
of all findings and trimmings) contained
in all such articles of that producer or
entity that are entered and eligible
under this clause during the preceding
1-year period.
``(vi) Special rules.--
``(I) Exception for findings and
trimmings.--An article otherwise
eligible for preferential treatment
under this paragraph shall not be
ineligible for such treatment because
the article contains findings or
trimmings of foreign origin, if such
findings and trimmings do not exceed 25
percent of the cost of the components of
the assembled product. Examples of
findings and trimmings are sewing
thread, hooks and eyes, snaps, buttons,
`bow buds', decorative lace, trim,
elastic strips, zippers, including
zipper tapes and labels, and other
similar products.
``(II) Certain interlining.--(aa) An
article otherwise eligible for
preferential treatment under this
paragraph shall not be ineligible for
such treatment because the article
contains certain interlinings of foreign
origin, if the value of such
[[Page 116 STAT. 1028]]
interlinings (and any findings and
trimmings) does not exceed 25 percent of
the cost of the components of the
assembled article.
``(bb) Interlinings eligible for the
treatment described in division (aa)
include only a chest type plate, `hymo'
piece, or `sleeve header', of woven or
weft-inserted warp knit construction and
of coarse animal hair or man-made
filaments.
``(cc) The treatment described in
this subclause shall terminate if the
President makes a determination that
United States manufacturers are
producing such interlinings in the
United States in commercial quantities.
``(III) De minimis rule.--An article
that would otherwise be ineligible for
preferential treatment under this
subparagraph because the article
contains yarns not wholly formed in the
United States or in one or more ATPDEA
beneficiary countries shall not be
ineligible for such treatment if the
total weight of all such yarns is not
more than 7 percent of the total weight
of the good.
``(IV) Special origin rule.--An
article otherwise eligible for
preferential treatment under clause (i)
or (iii) shall not be ineligible for
such treatment because the article
contains nylon filament yarn (other than
elastomeric yarn) that is classifiable
under subheading 5402.10.30, 5402.10.60,
5402.31.30, 5402.31.60, 5402.32.30,
5402.32.60, 5402.41.10, 5402.41.90,
5402.51.00, or 5402.61.00 of the HTS
from a country that is a party to an
agreement with the United States
establishing a free trade area, which
entered into force before January 1,
1995.
``(vii) Textile luggage.--Textile luggage--
``(I) assembled in an ATPDEA
beneficiary country from fabric wholly
formed and cut in the United States,
from yarns wholly formed in the United
States, that is entered under subheading
9802.00.80 of the HTS; or
``(II) assembled from fabric cut in
an ATPDEA beneficiary country from
fabric wholly formed in the United
States from yarns wholly formed in the
United States.
``(C) Handloomed, handmade, and folklore articles.--
For purposes of subparagraph (B)(iv), the President
shall consult with representatives of the ATPDEA
beneficiary countries concerned for the purpose of
identifying particular textile and apparel goods that
are mutually agreed upon as being handloomed, handmade,
or folklore goods of a kind described in section 2.3(a),
(b), or (c) of the Annex or Appendix 3.1.B.11 of the
Annex.
``(D) Penalties for transshipment.--
``(i) Penalties for exporters.--If the
President determines, based on sufficient
evidence, that an exporter has engaged in
transshipment with respect to apparel articles
from an ATPDEA beneficiary country, then the
President shall deny all benefits
[[Page 116 STAT. 1029]]
under this title to such exporter, and any
successor of such exporter, for a period of 2
years.
``(ii) Penalties for countries.--Whenever the
President finds, based on sufficient evidence,
that transshipment has occurred, the President
shall request that the ATPDEA beneficiary country
or countries through whose territory the
transshipment has occurred take all necessary and
appropriate actions to prevent such transshipment.
If the President determines that a country is not
taking such actions, the President shall reduce
the quantities of apparel articles that may be
imported into the United States from such country
by the quantity of the transshipped articles
multiplied by 3, to the extent consistent with the
obligations of the United States under the WTO.
``(iii) Transshipment described.--
Transshipment within the meaning of this
subparagraph has occurred when preferential
treatment under subparagraph (A) has been claimed
for an apparel article on the basis of material
false information concerning the country of
origin, manufacture, processing, or assembly of
the article or any of its components. For purposes
of this clause, false information is material if
disclosure of the true information would mean or
would have meant that the article is or was
ineligible for preferential treatment under
subparagraph (A).
``(E) Bilateral emergency actions.--
``(i) In general.--The President may take
bilateral emergency tariff actions of a kind
described in section 4 of the Annex with respect
to any apparel article imported from an ATPDEA
beneficiary country if the application of tariff
treatment under subparagraph (A) to such article
results in conditions that would be cause for the
taking of such actions under such section 4 with
respect to a like article described in the same 8-
digit subheading of the HTS that is imported from
Mexico.
``(ii) Rules relating to bilateral emergency
action.--For purposes of applying bilateral
emergency action under this subparagraph--
``(I) the requirements of paragraph
(5) of section 4 of the Annex (relating
to providing compensation) shall not
apply;
``(II) the term `transition period'
in section 4 of the Annex shall mean the
period ending December 31, 2006; and
``(III) the requirements to consult
specified in section 4 of the Annex
shall be treated as satisfied if the
President requests consultations with
the ATPDEA beneficiary country in
question and the country does not agree
to consult within the time period
specified under section 4 of the Annex.
``(4) Tuna.--
``(A) General rule.--Tuna that is harvested by
United States vessels or ATPDEA beneficiary country
vessels, that is prepared or preserved in any manner, in
an ATPDEA
[[Page 116 STAT. 1030]]
beneficiary country, in foil or other flexible airtight
containers weighing with their contents not more than
6.8 kilograms each, and that is imported directly into
the customs territory of the United States from an
ATPDEA beneficiary country, shall enter the United
States free of duty and free of any quantitative
restrictions.
``(B) Definitions.--In this paragraph--
``(i) United states vessel.--A `United States
vessel' is a vessel having a certificate of
documentation with a fishery endorsement under
chapter 121 of title 46, United States Code.
``(ii) ATPDEA vessel.--An `ATPDEA vessel' is a
vessel--
``(I) which is registered or
recorded in an ATPDEA beneficiary
country;
``(II) which sails under the flag of
an ATPDEA beneficiary country;
``(III) which is at least 75 percent
owned by nationals of an ATPDEA
beneficiary country or by a company
having its principal place of business
in an ATPDEA beneficiary country, of
which the manager or managers, chairman
of the board of directors or of the
supervisory board, and the majority of
the members of such boards are nationals
of an ATPDEA beneficiary country and of
which, in the case of a company, at
least 50 percent of the capital is owned
by an ATPDEA beneficiary country or by
public bodies or nationals of an ATPDEA
beneficiary country;
``(IV) of which the master and
officers are nationals of an ATPDEA
beneficiary country; and
``(V) of which at least 75 percent
of the crew are nationals of an ATPDEA
beneficiary country.
``(5) Customs procedures.--
``(A) In general.--
``(i) Regulations.--Any importer that claims
preferential treatment under paragraph (1), (3),
or (4) shall comply with customs procedures
similar in all material respects to the
requirements of Article 502(1) of the NAFTA as
implemented pursuant to United States law, in
accordance with regulations promulgated by the
Secretary of the Treasury.
``(ii) Determination.--
``(I) In general.--In order to
qualify for the preferential treatment
under paragraph (1), (3), or (4) and for
a Certificate of Origin to be valid with
respect to any article for which such
treatment is claimed, there shall be in
effect a determination by the President
that each country described in subclause
(II)--
``(aa) has implemented and
follows, or
``(bb) is making substantial
progress toward implementing and
following,
procedures and requirements similar in
all material respects to the relevant
procedures and requirements under
chapter 5 of the NAFTA.
[[Page 116 STAT. 1031]]
``(II) Country described.--A country
is described in this subclause if it is
an ATPDEA beneficiary country--
``(aa) from which the
article is exported; or
``(bb) in which materials
used in the production of the
article originate or in which
the article or such materials
undergo production that
contributes to a claim that the
article is eligible for
preferential treatment under
paragraph (1), (3), or (4).
``(B) Certificate of origin.--The Certificate of
Origin that otherwise would be required pursuant to the
provisions of subparagraph (A) shall not be required in
the case of an article imported under paragraph (1),
(3), or (4) if such Certificate of Origin would not be
required under Article 503 of the NAFTA (as implemented
pursuant to United States law), if the article were
imported from Mexico.
``(C) Report on cooperation of atpdea countries
concerning circumvention.--The United States
Commissioner of Customs shall conduct a study analyzing
the extent to which each ATPDEA beneficiary country--
``(i) has cooperated fully with the United
States, consistent with its domestic laws and
procedures, in instances of circumvention or
alleged circumvention of existing quotas on
imports of textile and apparel goods, to establish
necessary relevant facts in the places of import,
export, and, where applicable, transshipment,
including investigation of circumvention
practices, exchanges of documents, correspondence,
reports, and other relevant information, to the
extent such information is available;
``(ii) has taken appropriate measures,
consistent with its domestic laws and procedures,
against exporters and importers involved in
instances of false declaration concerning
quantities, description, classification, or origin
of textile and apparel goods; and
``(iii) has penalized the individuals and
entities involved in any such circumvention,
consistent with its domestic laws and procedures,
and has worked closely to seek the cooperation of
any third country to prevent such circumvention
from taking place in that third country.
The Commissioner <<NOTE: Deadline. Reports.>> of
Customs shall submit to the Congress, not later than
October 1, 2003, a report on the study conducted under
this subparagraph.
``(6) Definitions.--In this subsection--
``(A) Annex.--The term `the Annex' means Annex 300-B
of the NAFTA.
``(B) ATPDEA beneficiary country.--The term `ATPDEA
beneficiary country' means any `beneficiary country', as
defined in section 203(a)(1) of this title, which the
President designates as an ATPDEA beneficiary country,
taking into account the criteria contained in
subsections (c) and (d) of section 203 and other
appropriate criteria, including the following:
[[Page 116 STAT. 1032]]
``(i) Whether the beneficiary country has
demonstrated a commitment to--
``(I) undertake its obligations
under the WTO, including those
agreements listed in section 101(d) of
the Uruguay Round Agreements Act, on or
ahead of schedule; and
``(II) participate in negotiations
toward the completion of the FTAA or
another free trade agreement.
``(ii) The extent to which the country
provides protection of intellectual property
rights consistent with or greater than the
protection afforded under the Agreement on Trade-
Related Aspects of Intellectual Property Rights
described in section 101(d)(15) of the Uruguay
Round Agreements Act.
``(iii) The extent to which the country
provides internationally recognized worker rights,
including--
``(I) the right of association;
``(II) the right to organize and
bargain collectively;
``(III) a prohibition on the use of
any form of forced or compulsory labor;
``(IV) a minimum age for the
employment of children; and
``(V) acceptable conditions of work
with respect to minimum wages, hours of
work, and occupational safety and
health.
``(iv) Whether the country has implemented its
commitments to eliminate the worst forms of child
labor, as defined in section 507(6) of the Trade
Act of 1974.
``(v) The extent to which the country has met
the counternarcotics certification criteria set
forth in section 490 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2291j) for eligibility for
United States assistance.
``(vi) The extent to which the country has
taken steps to become a party to and implements
the Inter-American Convention Against Corruption.
``(vii) The extent to which the country--
``(I) applies transparent,
nondiscriminatory, and competitive
procedures in government procurement
equivalent to those contained in the
Agreement on Government Procurement
described in section 101(d)(17) of the
Uruguay Round Agreements Act; and
``(II) contributes to efforts in
international fora to develop and
implement international rules in
transparency in government procurement.
``(viii) The extent to which the country has
taken steps to support the efforts of the United
States to combat terrorism.
``(C) NAFTA.--The term `NAFTA' means the North
American Free Trade Agreement entered into between the
United States, Mexico, and Canada on December 17, 1992.
[[Page 116 STAT. 1033]]
``(D) WTO.--The term `WTO' has the meaning given
that term in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).
``(E) ATPDEA.--The term `ATPDEA' means the Andean
Trade Promotion and Drug Eradication Act.
``(F) FTAA.--The term `FTAA' means the Free Trade
Area for the Americas.''.
(b) Determination Regarding Retention of Designation.--Section
203(e)(1) of the Andean Trade Preference Act (19 U.S.C. 3202(e)(1)) is
amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) by inserting ``(A)'' after ``(1)''; and
(3) by adding at the end the following:
``(B) The President may, after the requirements of paragraph (2)
have been met--
``(i) withdraw or suspend the designation of any country as
an ATPDEA beneficiary country, or
``(ii) withdraw, suspend, or limit the application of
preferential treatment under section 204(b)(1), (3), or (4) to
any article of any country,
if, after such designation, the President determines that, as a result
of changed circumstances, the performance of such country is not
satisfactory under the criteria set forth in section 204(b)(6)(B).''.
(c) Conforming Amendments.--(1) Section 202 of the Andean Trade
Preference Act (19 U.S.C. 3201) is amended by inserting ``(or other
preferential treatment)'' after ``treatment''.
(2) Section 204(a) of the Andean Trade Preference Act (19 U.S.C.
3203(a)) is amended--
(A) in paragraph (1)--
(i) by inserting ``(or otherwise provided for)''
after ``eligibility''; and
(ii) by inserting ``(or preferential treatment)''
after ``duty-free treatment''; and
(B) in paragraph (2), by striking ``subsection (a)'' and
inserting ``paragraph (1)''.
(d) <<NOTE: 19 USC 3202 note.>> Petitions for Review.--
(1) In general.--Not <<NOTE: Deadline. Regulations.>> later
than 180 days after the date of the enactment of this Act, the
President shall promulgate regulations regarding the review of
eligibility of articles and countries under the Andean Trade
Preference Act, consistent with section 203(e) of such Act, as
amended by this title.
(2) Content of regulations.--The regulations shall be
similar to the regulations regarding eligibility under the
generalized system of preferences under title V of the Trade Act
of 1974 with respect to the timetable for reviews and content,
and shall include procedures for requesting withdrawal,
suspension, or limitations of preferential duty treatment under
the Andean Trade Preference Act, conducting reviews of such
requests, and implementing the results of the reviews.
(e) Reporting Requirements.--Section 203(f) of the Andean Trade
Preference Act (19 U.S.C. 3202(f)) is amended to read as follows:
``(f) Reporting Requirements.--
[[Page 116 STAT. 1034]]
``(1) In general.--Not <<NOTE: Deadline.>> later than April
30, 2003, and every 2 years thereafter during the period this
title is in effect, the United States Trade Representative shall
submit to the Congress a report regarding the operation of this
title, including--
``(A) with respect to subsections (c) and (d), the
results of a general review of beneficiary countries
based on the considerations described in such
subsections; and
``(B) the performance of each beneficiary country or
ATPEA beneficiary country, as the case may be, under the
criteria set forth in section 204(b)(6)(B).
``(2) Public comment.--Before <<NOTE: Federal Register,
publication.>> submitting the report described in paragraph (1),
the United States Trade Representative shall publish a notice in
the Federal Register requesting public comments on whether
beneficiary countries are meeting the criteria listed in section
204(b)(6)(B).''.
SEC. 3104. TERMINATION.
(a) In General.--Section 208 of the Andean Trade Preference Act (19
U.S.C. 3206) is amended to read as follows:
``SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.
``No duty-free treatment or other preferential treatment extended to
beneficiary countries under this title shall remain in effect after
December 31, 2006.''.
(b) Retroactive <<NOTE: 19 USC 3206 note.>> Application for Certain
Liquidations and Reliquidations.--
(1) In general.--Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to
paragraph (3), the entry--
(A) of any article to which duty-free treatment (or
preferential treatment) under the Andean Trade
Preference Act (19 U.S.C. 3201 et seq.) would have
applied if the entry had been made on December 4, 2001,
and
(B) that was made after December 4, 2001, and before
the date of the enactment of this Act,
shall be liquidated or reliquidated as if such duty-free
treatment (or preferential treatment) applied, and the Secretary
of the Treasury shall refund any duty paid with respect to such
entry.
(2) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(3) Requests.--Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
SEC. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL.
(a) Report to Congress.--The United States Trade Representative
shall review the implementation of the United States-Israel Free Trade
Agreement and shall submit to the Speaker of the House of
Representatives, the President of the Senate, the Committee on Ways and
Means of the House of Representatives, and the Committee on Finance of
the Senate a report on the results of such review.
[[Page 116 STAT. 1035]]
(b) Contents of Report.--The report under subsection (a) shall
include the following:
(1) A review of the terms of the United States-Israel Free
Trade Agreement, particularly the terms with respect to market
access commitments.
(2) A review of subsequent agreements which may have been
reached between the parties to the Agreement and of unilateral
concessions of additional benefits received by each party from
the other.
(3) A review of any current negotiations between the parties
to the Agreement with respect to implementation of the Agreement
and other pertinent matters.
(4) An assessment of the degree of fulfillment of
obligations under the Agreement by the United States and Israel.
(5) An assessment of improvements in structuring future
trade agreements that should be considered based on the
experience of the United States under the Agreement.
(c) Timing of Report.--The United States Trade Representative shall
submit the report under subsection (a) not later than 6 months after the
date of the enactment of this Act.
(d) Definition.--In this section, the terms ``United States-Israel
Free Trade Agreement'' and ``Agreement'' means the Agreement on the
Establishment of a Free Trade Area between the Government of the United
States of America and the Government of Israel entered into on April 22,
1985.
SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA.
Subheading 1604.14.20 of the Harmonized Tariff Schedule of the
United States is amended--
(1) in the article description, by striking ``20 percent of
the United States pack of canned tuna'' and inserting ``4.8
percent of apparent United States consumption of tuna in
airtight containers''; and
(2) by redesignating such subheading as subheading
1604.14.22.
SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC RECOVERY
ACT.
(a) In General.--Section 213(b)(2)(A) of the Carribean Basin
Economic Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as follows:
(1) Clause (i) is amended--
(A) by striking the matter preceding subclause (I)
and inserting the following:
``(i) Apparel articles assembled in one or
more cbtpa beneficiary countries.--Apparel
articles sewn or otherwise assembled in one or
more CBTPA beneficiary countries from fabrics
wholly formed and cut, or from components knit-to-
shape, in the United States from yarns wholly
formed in the United States, (including fabrics
not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the HTS
and are wholly formed and cut in the United
States) that are--''; and
(B) by adding at the end the following:
``Apparel articles entered on or after September
1, 2002, shall qualify under the preceding
sentence only if all dyeing, printing, and
finishing of the fabrics
[[Page 116 STAT. 1036]]
from which the articles are assembled, if the
fabrics are knit fabrics, is carried out in the
United States. Apparel articles entered on or
after September 1, 2002, shall qualify under the
first sentence of this clause only if all dyeing,
printing, and finishing of the fabrics from which
the articles are assembled, if the fabrics are
woven fabrics, is carried out in the United
States.''.
(2) Clause (ii) is amended to read as follows:
``(ii) Other apparel articles assembled in one
or more cbtpa beneficiary countries.--Apparel
articles sewn or otherwise assembled in one or
more CBTPA beneficiary countries with thread
formed in the United States from fabrics wholly
formed in the United States and cut in one or more
CBTPA beneficiary countries from yarns wholly
formed in the United States, or from components
knit-to-shape in the United States from yarns
wholly formed in the United States, or both
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or
5603 of the HTS and are wholly formed in the
United States). Apparel articles entered on or
after September 1, 2002, shall qualify under the
preceding sentence only if all dyeing, printing,
and finishing of the fabrics from which the
articles are assembled, if the fabrics are knit
fabrics, is carried out in the United States.
Apparel articles entered on or after September 1,
2002, shall qualify under the first sentence of
this clause only if all dyeing, printing, and
finishing of the fabrics from which the articles
are assembled, if the fabrics are woven fabrics,
is carried out in the United States.''.
(3) Clause (iii)(II) is amended to read as follows:
``(II) The amount referred to in subclause (I)
is as follows:
``(aa) 500,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2002.
``(bb) 850,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2003.
``(cc) 970,000,000 square meter
equivalents in each succeeding 1-year
period through September 30, 2008.''.
(4) Clause (iii)(IV) is amended to read as follows:
``(IV) The amount referred to in subclause
(III) is as follows:
``(aa) 4,872,000 dozen during the 1-
year period beginning on October 1,
2001.
``(bb) 9,000,000 dozen during the 1-
year period beginning on October 1,
2002.
``(cc) 10,000,000 dozen during the
1-year period beginning on October 1,
2003.
``(dd) 12,000,000 dozen in each
succeeding 1-year period through
September 30, 2008.''.
(5) Clause (iv) is amended to read as follows:
``(iv) Certain other apparel articles.--
[[Page 116 STAT. 1037]]
``(I) General rule.--Subject to
subclause (II), any apparel article
classifiable under subheading 6212.10 of
the HTS, except for articles entered
under clause (i), (ii), (iii), (v), or
(vi), if the article is both cut and
sewn or otherwise assembled in the
United States, or one or more CBTPA
beneficiary countries, or both.
``(II) Limitation.--During the 1-
year period beginning on October 1,
2001, and during each of the 6
succeeding 1-year periods, apparel
articles described in subclause (I) of a
producer or an entity controlling
production shall be eligible for
preferential treatment under
subparagraph (B) only if the aggregate
cost of fabrics (exclusive of all
findings and trimmings) formed in the
United States that are used in the
production of all such articles of that
producer or entity that are entered and
eligible under this clause during the
preceding 1-year period is at least 75
percent of the aggregate declared
customs value of the fabric (exclusive
of all findings and trimmings) contained
in all such articles of that producer or
entity that are entered and eligible
under this clause during the preceding
1-year period.
``(III) Development of procedure to
ensure compliance.--The United States
Customs Service shall develop and
implement methods and procedures to
ensure ongoing compliance with the
requirement set forth in subclause (II).
If the Customs Service finds that a
producer or an entity controlling
production has not satisfied such
requirement in a 1-year period, then
apparel articles described in subclause
(I) of that producer or entity shall be
ineligible for preferential treatment
under subparagraph (B) during any
succeeding 1-year period until the
aggregate cost of fabrics (exclusive of
all findings and trimmings) formed in
the United States that are used in the
production of such articles of that
producer or entity entered during the
preceding 1-year period is at least 85
percent of the aggregate declared
customs value of the fabric (exclusive
of all findings and trimmings) contained
in all such articles of that producer or
entity that are entered and eligible
under this clause during the preceding
1-year period.''.
(6) Clause (vii) is amended by adding at the end the
following new subclause:
``(V) Thread.--An article otherwise
eligible for preferential treatment
under this paragraph shall not be
ineligible for such treatment because
the thread used to assemble the article
is dyed, printed, or finished in one or
more CBTPA beneficiary countries.''.
(7) Section <<NOTE: 19 USC 2703.>> 213(b)(2)(A) of such Act
is further amended by adding at the end the following new
clause:
[[Page 116 STAT. 1038]]
``(ix) Apparel articles assembled in one or
more cbtpa beneficiary countries from united
states and cbtpa beneficiary country components.--
Apparel articles sewn or otherwise assembled in
one or more CBTPA beneficiary countries with
thread formed in the United States from components
cut in the United States and in one or more CBTPA
beneficiary countries from fabric wholly formed in
the United States from yarns wholly formed in the
United States, or from components knit-to-shape in
the United States and one or more CBTPA
beneficiary countries from yarns wholly formed in
the United States, or both (including fabrics not
formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the
HTS). Apparel articles shall qualify under this
clause only if they meet the requirements of
clause (i) or (ii) (as the case may be) with
respect to dyeing, printing, and finishing of knit
and woven fabrics from which the articles are
assembled.''.
(b) Effective <<NOTE: 19 USC 2703 note.>> Date of Certain
Provisions.--The amendment made by subsection (a)(3) shall take effect
on October 1, 2002.
SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.
(a) In General.--Section 112(b) of the African Growth and
Opportunity Act (19 U.S.C. 3721(b)) is amended as follows:
(1) Paragraph (1) is amended by amending the matter
preceding subparagraph (A) to read as follows:
``(1) Apparel articles assembled in one or more beneficiary
sub-saharan african countries.--Apparel articles sewn or
otherwise assembled in one or more beneficiary sub-Saharan
African countries from fabrics wholly formed and cut, or from
components knit-to-shape, in the United States from yarns wholly
formed in the United States, (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602 or
5603 of the Harmonized Tariff Schedule of the United States and
are wholly formed and cut in the United States) that are--''.
(2) Paragraph (2) is amended to read as follows:
``(2) Other apparel articles assembled in one or more
beneficiary sub-saharan african countries.--Apparel articles
sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries with thread formed in the United
States from fabrics wholly formed in the United States and cut
in one or more beneficiary sub-Saharan African countries from
yarns wholly formed in the United States, or from components
knit-to-shape in the United States from yarns wholly formed in
the United States, or both (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602 or
5603 of the Harmonized Tariff Schedule of the United States and
are wholly formed in the United States).''.
(3) Paragraph (3) is amended--
(A) by amending the matter preceding subparagraph
(A) to read as follows:
``(3) Apparel articles from regional fabric or yarns.--
Apparel articles wholly assembled in one or more beneficiary
sub-Saharan African countries from fabric wholly formed in
[[Page 116 STAT. 1039]]
one or more beneficiary sub-Saharan African countries from yarns
originating either in the United States or one or more
beneficiary sub-Saharan African countries (including fabrics not
formed from yarns, if such fabrics are classified under heading
5602 or 5603 of the Harmonized Tariff Schedule of the United
States and are wholly formed in one or more beneficiary sub-
Saharan African countries), or from components knit-to-shape in
one or more beneficiary sub-Saharan African countries from yarns
originating either in the United States or one or more
beneficiary sub-Saharan African countries, or apparel articles
wholly formed on seamless knitting machines in a beneficiary
sub-Saharan African country from yarns originating either in the
United States or one or more beneficiary sub-Saharan African
countries, subject to the following:''; and
(B) by amending subparagraph (B) to read as follows:
``(B) Special rule for lesser developed countries.--
``(i) In general.--Subject to subparagraph
(A), preferential treatment under this paragraph
shall be extended through September 30, 2004, for
apparel articles wholly assembled, or knit-to-
shape and wholly assembled, or both, in one or
more lesser developed beneficiary sub-Saharan
African countries regardless of the country of
origin of the fabric or the yarn used to make such
articles.
``(ii) Lesser developed beneficiary sub-
saharan african country.--For purposes of clause
(i), the term `lesser developed beneficiary sub-
Saharan African country' means--
``(I) a beneficiary sub-Saharan
African country that had a per capita
gross national product of less than
$1,500 in 1998, as measured by the
International Bank for Reconstruction
and Development;
``(II) Botswana; and
``(III) Namibia.''.
(4) Paragraph (4)(B) is amended by striking ``18.5'' and
inserting ``21.5''.
(5) Section <<NOTE: 19 USC 3121.>> 112(b) of such Act is
further amended by adding at the end the following new
paragraph:
``(7) Apparel articles assembled in one or more beneficiary
sub-saharan african countries from united states and beneficiary
sub-saharan african country components.--Apparel articles sewn
or otherwise assembled in one or more beneficiary sub-Saharan
African countries with thread formed in the United States from
components cut in the United States and one or more beneficiary
sub-Saharan African countries from fabric wholly formed in the
United States from yarns wholly formed in the United States, or
from components knit-to-shape in the United States and one or
more beneficiary sub-Saharan African countries from yarns wholly
formed in the United States, or both (including fabrics not
formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of the
United States).''.
(b) Increase in <<NOTE: 19 USC 3121 note.>> Limitation on Certain
Benefits.--The applicable percentage under clause (ii) of section
112(b)(3)(A) of
[[Page 116 STAT. 1040]]
the African Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A)) shall
be increased--
(1) by 2.17 percent for the 1-year period beginning on
October 1, 2002, and
(2) by equal increments in each succeeding 1-year period
provided for in such clause, so that for the 1-year period
beginning October 1, 2007, the applicable percentage is
increased by 3.5 percent,
except that such increase shall not apply with respect to articles
eligible under subparagraph (B) of section 112(b)(3) of that Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Duty-Free Treatment Under System.--Section 505 of
the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended by striking
``September 30, 2001'' and inserting ``December 31, 2006''.
(b) Retroactive <<NOTE: 19 USC 2465 note.>> Application for Certain
Liquidations and Reliquidations.--
(1) In general.--Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to
paragraph (2), the entry--
(A) of any article to which duty-free treatment
under title V of the Trade Act of 1974 would have
applied if the entry had been made on September 30,
2001,
(B) that was made after September 30, 2001, and
before the date of the enactment of this Act, and
(C) to which duty-free treatment under title V of
that Act did not apply,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry.
(2) Requests.--Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
(3) Definition.--As used in this subsection, the term
``entry'' includes a withdrawal from warehouse for consumption.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) Eligibility for Generalized System of Preferences.--Section
502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) is
amended by striking the period at the end and inserting ``or such
country has not taken steps to support the efforts of the United States
to combat terrorism.''.
[[Page 116 STAT. 1041]]
(b) Definition of Internationally Recognized Worker Rights.--Section
507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)) is amended by
amending subparagraph (D) to read as follows:
``(D) a minimum age for the employment of children,
and a prohibition on the worst forms of child labor, as
defined in paragraph (6); and''.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
SEC. 5101. <<NOTE: Wool Manufacturer Payment Clarification and Technical
Corrections Act.>> WOOL PROVISIONS.
(a) Short Title.--This section may be cited as the ``Wool
Manufacturer Payment Clarification and Technical Corrections Act''.
(b) Clarification of Temporary Duty Suspension.--Heading 9902.51.13
of the Harmonized Tariff Schedule of the United States is amended by
inserting ``average'' before ``diameters''.
(c) Payments to Manufacturers of Certain Wool Products.--
(1) Payments.--Section 505 of the Trade and Development Act
of 2000 (Public Law 106-200; 114 Stat. 303) is amended as
follows:
(A) Subsection (a) is amended--
(i) by striking ``In each of the calendar
years'' and inserting ``For each of the calendar
years''; and
(ii) by striking ``for a refund of duties''
and all that follows through the end of the
subsection and inserting ``for a payment equal to
an amount determined pursuant to subsection
(d)(1).''.
(B) Subsection (b) is amended to read as follows:
``(b) Wool Yarn.--
``(1) Importing manufacturers.--For each of the calendar
years 2000, 2001, and 2002, a manufacturer of worsted wool
fabrics who imports wool yarn of the kind described in heading
5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of the
United States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(2).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of worsted wool
fabrics of imported wool yarn of the kind described in heading
5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of the
United States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(2).''.
(C) Subsection (c) is amended to read as follows:
``(c) Wool Fiber and Wool Top.--
``(1) Importing manufacturers.--For each of the calendar
years 2000, 2001, and 2002, a manufacturer of wool yarn or wool
fabric who imports wool fiber or wool top of the kind described
in heading 5101.11, 5101.19, 5101.21, 5101.29,
[[Page 116 STAT. 1042]]
5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or
9902.51.14 of the Harmonized Tariff Schedule of the United
States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(3).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of wool yarn or wool
fabric of imported wool fiber or wool top of the kind described
in heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10,
5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of the
Harmonized Tariff Schedule of the United States shall be
eligible for a payment equal to an amount determined pursuant to
subsection (d)(3).''.
(D) Section 505 is further amended by striking
subsection (d) and inserting the following new
subsections:
``(d) Amount of Annual Payments to Manufacturers.--
``(1) Manufacturers of men's suits, etc. of imported worsted
wool fabrics.--
``(A) Eligible to receive more than $5,000.--Each
annual payment to manufacturers described in subsection
(a) who, according to the records of the Customs Service
as of September 11, 2001, are eligible to receive more
than $5,000 for each of the calendar years 2000, 2001,
and 2002, shall be in an amount equal to one-third of
the amount determined by multiplying $30,124,000 by a
fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible wool
products imported in calendar year 1999 by the
manufacturer making the claim, and
``(ii) the denominator of which is the total
amount attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
all the manufacturers described in subsection (a)
who, according to the records of the Customs
Service as of September 11, 2001, are eligible to
receive more than $5,000 for each such calendar
year under this section as it was in effect on
that date.
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported worsted wool fabrics described in
subsection (a).
``(C) Others.--All manufacturers described in
subsection (a), other than the manufacturers to which
subparagraph (A) applies, shall each receive an annual
payment in an amount equal to one-third of the amount
determined by dividing $1,665,000 by the number of all
such other manufacturers.
``(2) Manufacturers of worsted wool fabrics of imported wool
yarn.--
``(A) Importing manufacturers.--Each annual payment
to an importing manufacturer described in subsection
(b)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $2,202,000 by a
fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible wool
products
[[Page 116 STAT. 1043]]
imported in calendar year 1999 by the importing
manufacturer making the claim, and
``(ii) the denominator of which is the total
amount attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
all the importing manufacturers described in
subsection (b)(1).
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported wool yarn described in subsection
(b)(1).
``(C) Nonimporting manufacturers.--Each annual
payment to a nonimporting manufacturer described in
subsection (b)(2) shall be in an amount equal to one-
half of the amount determined by multiplying $141,000 by
a fraction--
``(i) the numerator of which is the amount
attributable to the purchases of imported eligible
wool products in calendar year 1999 by the
nonimporting manufacturer making the claim, and
``(ii) the denominator of which is the total
amount attributable to the purchases of imported
eligible wool products in calendar year 1999 by
all the nonimporting manufacturers described in
subsection (b)(2).
``(3) Manufacturers of wool yarn or wool fabric of imported
wool fiber or wool top.--
``(A) Importing manufacturers.--Each annual payment
to an importing manufacturer described in subsection
(c)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $1,522,000 by a
fraction--
``(i) the numerator of which is the amount
attributable to the duties paid on eligible wool
products imported in calendar year 1999 by the
importing manufacturer making the claim, and
``(ii) the denominator of which is the total
amount attributable to the duties paid on eligible
wool products imported in calendar year 1999 by
all the importing manufacturers described in
subsection (c)(1).
``(B) Eligible wool products.--For purposes of
subparagraph (A), the term `eligible wool products'
refers to imported wool fiber or wool top described in
subsection (c)(1).
``(C) Nonimporting manufacturers.--Each annual
payment to a nonimporting manufacturer described in
subsection (c)(2) shall be in an amount equal to one-
half of the amount determined by multiplying $597,000 by
a fraction--
``(i) the numerator of which is the amount
attributable to the purchases of imported eligible
wool products in calendar year 1999 by the
nonimporting manufacturer making the claim, and
``(ii) the denominator of which is the amount
attributable to the purchases of imported eligible
wool products in calendar year 1999 by all the
nonimporting manufacturers described in subsection
(c)(2).
``(4) Letters of intent.--Except for the nonimporting
manufacturers described in subsections (b)(2) and (c)(2) who may
make claims under this section by virtue of the enactment
[[Page 116 STAT. 1044]]
of the Wool Manufacturer Payment Clarification and Technical
Corrections Act, only manufacturers who, according to the
records of the Customs Service, filed with the Customs Service
before September 11, 2001, letters of intent to establish
eligibility to be claimants are eligible to make a claim for a
payment under this section.
``(5) Amount attributable to purchases by nonimporting
manufacturers.--
``(A) Amount attributable.--For purposes of
paragraphs (2)(C) and (3)(C), the amount attributable to
the purchases of imported eligible wool products in
calendar year 1999 by a nonimporting manufacturer shall
be the amount the nonimporting manufacturer paid for
eligible wool products in calendar year 1999, as
evidenced by invoices. The nonimporting manufacturer
shall make such calculation and submit the resulting
amount to the Customs Service, within 45 days after the
date of enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act, in a signed
affidavit that attests that the information contained
therein is true and accurate to the best of the
affiant's belief and knowledge. The nonimporting
manufacturer shall retain the records upon which the
calculation is based for a period of five years
beginning on the date the affidavit is submitted to the
Customs Service.
``(B) Eligible wool product.--For purposes of
subparagraph (A)--
``(i) the eligible wool product for
nonimporting manufacturers of worsted wool fabrics
is wool yarn of the kind described in heading
5107.10 or 9902.51.13 of the Harmonized Tariff
Schedule of the United States purchased in
calendar year 1999; and
``(ii) the eligible wool products for
nonimporting manufacturers of wool yarn or wool
fabric are wool fiber or wool top of the kind
described in heading 5101.11, 5101.19, 5101.21,
5101.29, 5101.30, 5103.10, 5103.20, 5104.00,
5105.21, 5105.29, or 9902.51.14 of such Schedule
purchased in calendar year 1999.
``(6) Amount attributable to duties paid.--For purposes of
paragraphs (1), (2)(A), and (3)(A), the amount attributable to
the duties paid by a manufacturer shall be the amount shown on
the records of the Customs Service as of September 11, 2001,
under this section as then in effect.
``(7) Schedule of payments; reallocations.--
``(A) Schedule.--Of the payments described in
paragraphs (1), (2)(A), and (3)(A), the Customs Service
shall make the first and second installments on or
before the date that is 45 days after the date of
enactment of the Wool Manufacturer Payment Clarification
and Technical Corrections Act, and the third installment
on or before April 15, 2003. Of the payments described
in paragraphs (2)(C) and (3)(C), the Customs Service
shall make the first installment on or before the date
that is 120 days after the date of enactment of the Wool
Manufacturer Payment Clarification and Technical
Corrections Act, and the second installment on or before
April 15, 2003.
[[Page 116 STAT. 1045]]
``(B) Reallocations.--In the event that a
manufacturer that would have received payment under
subparagraph (A) or (C) of paragraph (1), (2), or (3)
ceases to be qualified for such payment as such a
manufacturer, the amounts otherwise payable to the
remaining manufacturers under such subparagraph shall be
increased on a pro rata basis by the amount of the
payment such manufacturer would have received.
``(8) Reference.--For purposes of paragraphs (1)(A) and (6),
the `records of the Customs Service as of September 11, 2001'
are the records of the Wool Duty Unit of the Customs Service on
September 11, 2001, as adjusted by the Customs Service to the
extent necessary to carry out this section. The amounts so
adjusted are not subject to administrative or judicial review.
``(e) Affidavits by Manufacturers.--
``(1) Affidavit required.--A manufacturer may not receive a
payment under this section for calendar year 2000, 2001, or
2002, as the case may be, unless that manufacturer has submitted
to the Customs Service for that calendar year a signed affidavit
that attests that, during that calendar year, the affiant was a
manufacturer in the United States described in subsection (a),
(b), or (c).
``(2) Timing.--An <<NOTE: Deadlines.>> affidavit under
paragraph (1) shall be valid--
``(A) in the case of a manufacturer described in
paragraph (1), (2)(A), or (3)(A) of subsection (d)
filing a claim for a payment for calendar year 2000 or
2001, or both, only if the affidavit is postmarked no
later than 15 days after the date of enactment of the
Wool Manufacturer Payment Clarification and Technical
Corrections Act; and
``(B) in the case of a claim for a payment for
calendar year 2002, only if the affidavit is postmarked
no later than March 1, 2003.
``(f) Offsets.--Notwithstanding any other provision of this section,
any amount otherwise payable under subsection (d) to a manufacturer in
calendar year 2001 and, where applicable, in calendar years 2002 and
2003, shall be reduced by the amount of any payment received by that
manufacturer under this section before the enactment of the Wool
Manufacturer Payment Clarification and Technical Corrections Act.
``(g) Definition.--For purposes of this section, the manufacturer is
the party that owns--
``(1) imported worsted wool fabric, of the kind described in
heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff
Schedule of the United States, at the time the fabric is cut and
sewn in the United States into men's or boys' suits, suit-type
jackets, or trousers;
``(2) imported wool yarn, of the kind described in heading
5107.01 or 9902.51.13 of such Schedule, at the time the yarn is
processed in the United States into worsted wool fabric; or
``(3) imported wool fiber or wool top, of the kind described
in heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10,
5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of such
Schedule, at the time the wool fiber or wool top is processed in
the United States into wool yarn.''.
[[Page 116 STAT. 1046]]
(2) Funding.--There is authorized to be appropriated and is
hereby appropriated, out of amounts in the General Fund of the
Treasury not otherwise appropriated, $36,251,000 to carry out
the amendments made by paragraph (1).
SEC. 5102. DUTY SUSPENSION ON WOOL.
(a) Extension of Temporary Duty Reductions.--
(1) Heading 9902.51.11.--Heading 9902.51.11 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(2) Heading 9902.51.12.--Heading 9902.51.12 of the
Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``2003'' and inserting ``2005''; and
(B) by striking ``6%'' and inserting ``Free''.
(3) Heading 9902.51.13.--Heading 9902.51.13 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(4) Heading 9902.51.14.--Heading 9902.51.14 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``2003'' and inserting ``2005''.
(b) Limitation on Quantity of Imports.--
(1) Note 15.--U.S. Note 15 to subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``from January 1 to December 31 of
each year, inclusive''; and
(B) by striking ``, or such other'' and inserting
the following: ``in calendar year 2001, 3,500,000 square
meter equivalents in calendar year 2002, and 4,500,000
square meter equivalents in calendar year 2003 and each
calendar year thereafter, or such greater''.
(2) Note 16.--U.S. Note 16 to subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``from January 1 to December 31 of
each year, inclusive''; and
(B) by striking ``, or such other'' and inserting
the following: ``in calendar year 2001, 2,500,000 square
meter equivalents in calendar year 2002, and 3,500,000
square meter equivalents in calendar year 2003 and each
calendar year thereafter, or such greater''.
(c) Extension of Duty Refunds and Wool Research Trust Fund.--
(1) In general.--The United States Customs Service shall pay
each manufacturer that receives a payment under section 505 of
the Trade and Development Act of 2000 (Public Law 106-200) for
calendar year 2002, and that provides an affidavit that it
remains a manufacturer in the United States as of January 1 of
the year of the payment, 2 additional payments, each payment
equal to the payment received for calendar year 2002 as follows:
(A) The first payment to be made after January 1,
2004, but on or before April 15, 2004.
(B) The second payment to be made after January 1,
2005, but on or before April 15, 2005.
[[Page 116 STAT. 1047]]
(2) Conforming amendment.--Section 506(f) <<NOTE: 7 USC 7101
note.>> of the Trade and Development Act of 2000 (Public Law
106-200) is amended by striking ``2004'' and inserting ``2006''.
(3) Authorization.--There is authorized to be appropriated
and is hereby appropriated out of amounts in the general fund of
the Treasury not otherwise appropriated such sums as are
necessary to carry out the provisions of this subsection.
(d) Effective Date.--The amendment made by subsection (a)(2)(B)
applies to goods entered, or withdrawn from warehouse for consumption,
on or after January 1, 2002.
Subtitle B--Other Provisions
SEC. 5201. <<NOTE: 19 USC 3539.>> FUND FOR WTO DISPUTE SETTLEMENTS.
(a) Establishment of Fund.--There is established in the Treasury a
fund for the payment of settlements under this section.
(b) Authority of USTR to Pay Settlements.--Amounts in the fund
established under subsection (a) shall be available, as provided in
appropriations Acts, only for the payment by the United States Trade
Representative of the amount of the total or partial settlement of any
dispute pursuant to proceedings under the auspices of the World Trade
Organization, if--
(1) in the case of a total or partial settlement in an
amount of not more than $10,000,000, the Trade Representative
certifies to the Secretary of the Treasury that the settlement
is in the best interests of the United States; and
(2) in the case of a total or partial settlement in an
amount of more than $10,000,000, the Trade Representative
certifies to the Congress that the settlement is in the best
interests of the United States.
(c) Appropriations.--There are authorized to be appropriated to the
fund established under subsection (a)--
(1) $50,000,000; and
(2) amounts equivalent to amounts recovered by the United
States pursuant to the settlement of disputes pursuant to
proceedings under the auspices of the World Trade Organization.
Amounts appropriated to the fund are authorized to remain available
until expended.
(d) Management of fund.--Sections 9601 and 9602(b) of the Internal
Revenue Code of 1986 shall apply to the fund established under
subsection (a) to the same extent as such provisions apply to trust
funds established under subchapter A of chapter 98 of such Code.
SEC. 5202. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN
NUCLEAR FACILITIES.
(a) In General.--Subheading 9902.84.02 of the Harmonized Tariff
Schedule of the United States is amended--
(1) by striking ``4.9%'' and inserting ``Free''; and
(2) by striking ``12/31/2003'' and inserting ``12/31/2006''.
(b) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
apply to goods entered, or withdrawn from warehouse for
consumption, on or after January 1, 2002.
[[Page 116 STAT. 1048]]
(2) Retroactive application.--Notwithstanding section 514 of
the Tariff Act of 1930 or any other provision of law, and
subject to paragraph (4), the entry of any article--
(A) that was made on or after January 1, 2002, and
(B) to which duty-free treatment would have applied
if the amendment made by this section had been in effect
on the date of such entry,
shall be liquidated or reliquidated as if such duty-free
treatment applied, and the Secretary of the Treasury shall
refund any duty paid with respect to such entry.
(3) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(4) Requests.--Liquidation or reliquidation may be made
under paragraph (2) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service--
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be
located.
SEC. 5203. SUGAR TARIFF-RATE QUOTA CIRCUMVENTION.
(a) In General.--Chapter 17 of the Harmonized Tariff Schedule of the
United States is amended in the superior text to subheading 1702.90.05
by striking ``Containing'' and all that follows through ``solids:'' and
inserting the following:
``Containing soluble non-sugar solids (excluding any foreign
substances, including but not limited to molasses, that may have
been added to or developed in the product) equal to 6 percent or
less by weight of the total soluble solids:''.
(b) Monitoring for Circumvention.--The Secretary of Agriculture and
the Commissioner of Customs shall continuously monitor imports of sugar
and sugar-containing products provided for in chapters 17, 18, 19, and
21 of the Harmonized Tariff Schedule of the United States, other than
molasses imported for use in animal feed or the production of rum and
articles prepared for marketing to the ultimate consumer in the form and
package in which imported, for indications that an article is being used
to circumvent a tariff-rate quota provided for in those chapters. The
Secretary and Commissioner shall specifically examine imports of
articles provided for in subheading 1703.10.30 of the Harmonized Tariff
Schedule of the United States.
[[Page 116 STAT. 1049]]
(c) Reports and Recommendations.--The <<NOTE: Deadline.>> Secretary
and the Commissioner shall report their findings to Congress and the
President not later than 180 days after the date of enactment of this
Act and every 6 months thereafter. The reports shall include data and a
description of developments and trends in the composition of trade of
articles provided for in the chapters of the Harmonized Tariff Schedule
of the United States identified in subsection (b) and any indications of
circumvention that may exist. The reports shall also include
recommendations for ending such circumvention, including recommendations
for legislation.
Approved August 6, 2002.
LEGISLATIVE HISTORY--H.R. 3009 (S. 2485):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 107-290 (Comm. on Ways and Means) and 107-624 (Comm.
of Conference).
SENATE REPORTS: No. 107-126 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 147 (2001):
Nov. 16, considered and passed
House.
Vol. 148 (2002):
May 1, 2, 6, 8-10, 13-17, 20-23,
considered and passed Senate,
amended.
June 26, House concurred in Senate
amendement with an amendment
pursuant to H. Res. 450.
July 26, House agreed to conference
report.
Aug. 1, Senate agreed to conference
report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
Aug. 6, Presidential remarks.
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